Gold Spot (XAU/USD) - Supply and Resistance Zone Analysis

The chart displays the price movement of Gold Spot (XAU/USD) on a 1-hour timeframe. It highlights a significant resistance zone (R.S) at the top and a supply area at the bottom. After reaching the resistance zone, the price experienced a sharp decline, eventually reaching the supply area. The current price is fluctuating near the lower boundary of the supply area, suggesting potential buying interest or further bearish pressure. Volume data indicates increased activity during the recent decline.

Trade active

The chart currently shows a bearish movement after the price was rejected from the resistance zone (R.S). The price dropped sharply and is now consolidating near the supply area. This consolidation may indicate a potential reversal if buyers gain momentum, or a continuation of the downtrend if selling pressure persists.

The increased volume during the downward move indicates strong selling interest. Traders may watch for a breakout from the supply area for confirmation of trend continuation or signs of reversal if buying pressure emerges.

Trade closed: target reached

The price has declined significantly and is now consolidating around the support zone (L.S), indicating a potential area of buying interest or the risk of a breakdown if selling pressure persists.

The volume surge during the recent drop suggests strong bearish sentiment, but the consolidation hints that buyers might be stepping in. A clear break below the support zone could trigger further selling, while a bounce from this level might initiate a recovery towards the resistance area.

Would you like insights on potential trading strategies based on this setup?

fsanalysis6

I Will Sharing Personal Entries &How Trades.
All Of These For Free & I Will Not Take a Penny From Anyone .
So Please My Friends Trade On Your Own Risk
If You Guys Like My Ideas Then Follow Me And Comments Me .

Also on:

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.

fsanalysis6

Also on: