Xauusd Gold sell zone @2897 H4 chart analysisThe chart you provided is an H4 (4-hour) analysis of XAU/USD (Gold vs. USD). Here are the key takeaways:
Chart Observations:
1. Sell Zone @ 2897:
The price recently tested the $2897 resistance level and formed a double-top pattern ("TOP 1" and "TOP 2"), indicating potential reversal.
Sellers appear to be defending this level, leading to a decline.
2. Trend Breakdown:
The chart initially shows bullish momentum leading up to higher highs.
However, an upward trendline has now been broken, confirming bearish pressure.
3. Expected Price Movement:
After breaking below support, the price is consolidating and may retest the previous support-turned-resistance.
A continuation of the downward movement is expected, potentially targeting $2,880 - $2,865 levels.
4. Bearish Confirmation:
Volume analysis shows increased selling pressure after the rejection from the resistance zone.
If price fails to break back above $2897, more downside is expected.
Trading Strategy:
Sell Entry: Near $2897 - $2900 resistance.
Take Profit (TP) Levels:
TP1: $2880
TP2: $2865
TP3: $2845 (longer-term target)
Stop Loss (SL): Above $2905 to minimize risk.
Alternative Buy Setup: If price breaks above $2905 and sustains, reconsider bearish bias.
Conclusion:
Bearish bias is valid as long as price remains below $2897.
Watch for confirmation on lower timeframes before entering a sell trade.
Fundamental Factors: Keep an eye on U.S. economic data (PCE inflation, Fed speeches), which may impact gold prices.
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