XAUUSD Uptrend is Nearing a Key Reversal Zone—Is it Time to Sell

Gold (XAUUSD) has reached a new All-Time High (ATH) in recent days. Can it maintain its upward trend? What are your thoughts?


Educational Note: From the perspective of Technical Analysis, when an asset is building an All-Time High (ATH) and the prior price history is not surrounding the price, the analysis becomes more difficult, but we must be able to make the most of the technical analysis tool.
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Gold is nearing the Potential Reversal Zone (PRZ) between $2,872-$2,845. In addition, Gold is confronting a series of resistance levels that have the potential to halt its upward trend.

According to Classical Technical Analysis, Gold appears to be forming an Ascending Broadening Wedge Pattern. This bearish pattern is characterized by higher highs and higher lows that expand over time, indicating increased volatility and weakening bullish momentum, often leading to a breakdown below support. Traders look for a confirmed breakdown as a short-selling opportunity.

The Regular Divergence (RD-) between consecutive peaks indicates that Gold will fall to the lower line of the wedge pattern and support zone ($2,800-$2,787). However, if Gold breaks the resistance lines and rises above $2,873, it is expected to increase further. Follow the updated ideas for Gold Analyze (XAUUSD), 1-hour time frame. Remember to set a stop loss for your positions.

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Gold seems to have succeeded in forming the Three Falling Peak Pattern after breaking the Uptrend line. Three Falling Peak Pattern: The Three Falling Peaks is a bearish reversal pattern where the price forms three consecutive lower highs, indicating weakening buying pressure. A breakdown below the support level confirms the pattern, signaling a potential downtrend. I expect gold to go down to at least the lower line of the Ascending Broadening Wedge Pattern. New Potential Reversal Zone(PRZ): $2,892-$2,871