XAUUSD formed a symmetrical triangle pattern (converging trendlines), followed by a breakdown of the ascending trendline, suggesting bearish momentum.
Price has broken below the ascending support trendline and is currently testing a minor consolidation zone, indicating potential for further downside.
🔻 Bearish Setup:
Entry Point:
Current price around $3,223.36, just below the broken ascending trendline.
Ideal sell entry confirmation has occurred with the break of the ascending trendline support.
🎯 Downside Targets:
Target 1:
$3,194.752
This level aligns with previous structure support and is the first take-profit zone.
Target 2:
$3,176.149
A deeper support zone formed by previous price action. If price continues bearish momentum, it will likely react here.
Target 3:
$3,132.646
This is a major support zone and the final take-profit level based on the chart. Reaching here would confirm a full bearish move.
🛑 Stop Loss Placement:
$3,247.014
Placed above the upper resistance trendline and recent swing high. If price breaks above this level, it invalidates the bearish pattern.
📈 Key Chart Details:
Candlestick Behavior: Multiple rejections at the upper trendline suggest strong resistance.
Volume: Volume spike at the breakdown level would further confirm bearish bias (not visible in the current image, but important to monitor).
Risk-Reward: The setup shows a favorable risk-to-reward ratio, especially if holding till Target 3.
⚠️ Potential Considerations:
Watch for fakeouts or retests of the broken trendline. A retest of $3,230-$3,235 could occur before further decline.
Monitor economic news/events like U.S. inflation, Fed announcements, or geopolitical tensions as they heavily impact gold.
✅ Conclusion:
This is a high-probability short setup for XAUUSD, with confirmation from:
Symmetrical triangle breakdown,
Lower highs,
Clear downside targets,
Well-defined stop-loss.
If bearish momentum continues and fundamentals align, gold could slide toward $3,132, completing the full projected move.
Price has broken below the ascending support trendline and is currently testing a minor consolidation zone, indicating potential for further downside.
🔻 Bearish Setup:
Entry Point:
Current price around $3,223.36, just below the broken ascending trendline.
Ideal sell entry confirmation has occurred with the break of the ascending trendline support.
🎯 Downside Targets:
Target 1:
$3,194.752
This level aligns with previous structure support and is the first take-profit zone.
Target 2:
$3,176.149
A deeper support zone formed by previous price action. If price continues bearish momentum, it will likely react here.
Target 3:
$3,132.646
This is a major support zone and the final take-profit level based on the chart. Reaching here would confirm a full bearish move.
🛑 Stop Loss Placement:
$3,247.014
Placed above the upper resistance trendline and recent swing high. If price breaks above this level, it invalidates the bearish pattern.
📈 Key Chart Details:
Candlestick Behavior: Multiple rejections at the upper trendline suggest strong resistance.
Volume: Volume spike at the breakdown level would further confirm bearish bias (not visible in the current image, but important to monitor).
Risk-Reward: The setup shows a favorable risk-to-reward ratio, especially if holding till Target 3.
⚠️ Potential Considerations:
Watch for fakeouts or retests of the broken trendline. A retest of $3,230-$3,235 could occur before further decline.
Monitor economic news/events like U.S. inflation, Fed announcements, or geopolitical tensions as they heavily impact gold.
✅ Conclusion:
This is a high-probability short setup for XAUUSD, with confirmation from:
Symmetrical triangle breakdown,
Lower highs,
Clear downside targets,
Well-defined stop-loss.
If bearish momentum continues and fundamentals align, gold could slide toward $3,132, completing the full projected move.
Trade closed: stop reached
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Join our telegram channel for free signals and analysis updates
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.