XAU/USD Chart Pattern ObservedBased on the image you've shared, this is a technical analysis chart for gold (XAU/USD), with a visible bearish setup in play. Here’s a detailed sell-side analysis:
Chart Pattern Observed
Bearish Pennant/Wedge Breakout:
The price appears to be breaking out downward from a rising wedge or bearish pennant pattern.
These patterns typically indicate a continuation to the downside after a short consolidation or pullback.
Key Levels Identified
Resistance Zone:
118.800 (Strong resistance level marked in red)
Price failed to break above this and reversed, confirming it as a solid supply zone.
Current Price: Around 117.500
Support Levels (Take Profit Targets):
116.000 – Minor support/first TP level
114.000 – Major support/final TP level (likely the full target of the move)
RSI Indicator
RSI at 50.71 – neutral but pointing slightly downward.
This gives room for further bearish momentum to unfold.
Sell Trade Setup
Entry: After confirmed break below the rising trendline (around 117.800 - 117.500)
Stop Loss: Above 118.800 (just above the resistance zone to avoid fakeouts)
Take Profits:
TP1: 116.000
TP2: 114.000
Trade Justification
Clear lower highs forming.
Rejection at strong resistance.
Breakdown of rising structure = bearish continuation.
Bearish projection arrows on chart suggest institutional outlook favors sell.
Risk Management
Use proper lot sizing based on your account balance and risk %.
Look for a retest of the trendline as a safer sell entry if missed the initial break.
