Gold (XAU/USD) Price Analysis: Bearish Reversal After Double TopThis chart represents the Gold Spot price (XAU/USD) on the 1-hour timeframe. Here’s an analysis of the price action and structure:
Key Observations:
Double Top Formation:
The red arrow highlights a potential double top pattern, indicating a possible bearish reversal.
The price attempted to break above resistance around $2,927 but failed.
Support & Resistance Levels:
Resistance Zone (Red Area): Around $2,920 - $2,927, where the price has struggled to break through.
Support Zone (Green Area): Around $2,875 - $2,880, where buyers might step in.
Trendline Break:
A blue trendline was supporting the uptrend, but the price has broken below it.
This signals a potential shift from bullish to bearish sentiment.
Bearish Outlook:
The chart suggests a sell setup, with a target around $2,880.
If this level breaks, further downside movement is possible.
Conclusion:
If the price stays below $2,912, further declines are likely.
A retest of $2,875 - $2,880 is expected.
A break above $2,927 would invalidate the bearish setup.