Gold ideas , daily time frame possible correction Gold (XAU/USD) โ Daily Chart Analysis (Feb 25, 2025)
1. Market Structure & Trend Analysis
Gold is in a strong uptrend, recently hitting new highs near $2,953.
However, the chart shows a rising wedge pattern, which is a bearish reversal signal when broken to the downside.
The last few candles suggest potential weakness, as price action is struggling to push higher.
2. RSI & Momentum Analysis
Bearish RSI Divergence: The price has made higher highs, but the RSI has made lower highs, indicating weakening momentum.
RSI is currently at 68.71, close to the overbought zone (70), which suggests a potential pullback.
3. Key Levels to Watch
Resistance:
$2,953 - $2,960 (Recent all-time high, key breakout level)
$3,000 psychological level (If the rally continues)
Support:
$2,900 - $2,880 (First major support, previous breakout zone)
$2,850 - $2,820 (Stronger demand area if correction deepens)
4. Potential Trade Scenarios
๐ Bearish Scenario (High Probability)
If price breaks below the wedge, Gold could see a pullback towards $2,900 - $2,880.
Short setup: Entry on a confirmed breakdown with a stop above $2,960.
Downside target: $2,880 - $2,850.
๐ Bullish Continuation (Less Likely)
If Gold holds above $2,930 - $2,940, buyers may push it towards the key psychological level of $3,000.
Confirmation: Strong bullish candle with increasing volume.
5. Conclusion & Strategy
Short-term bias: Bearish due to rising wedge and RSI divergence.
Watch for breakdown confirmation below $2,930 for a pullback trade.
Long-term investors: Any correction to $2,850 - $2,820 could be a strong buying opportunity.