XAUUSD (Gold) - Major Breakdown Expected, Targeting 2600
Gold (XAU/USD) is currently showing signs of exhaustion after a prolonged bullish rally that has taken the price above $2,700. Based on technical indicators and key levels, we are approaching a critical juncture where a major breakdown could be imminent.
Key Levels and Targets:
Bounce back test: $2,474
This level represents a possible short-term rebound zone before the downtrend resumes. It aligns with previous minor support, acting as a key resistance for now.
Critical Break-Down Level: $2,720
The price has been hovering around $2,720, which is a crucial support level. A daily or weekly close below this level would likely confirm a stronger downward move.
Ultimate Target: $2,600
Once the break of $2,720 is confirmed, the next major target stands at $2,600. This level represents a deeper retracement in line with the completion of a larger cycle of profit-taking in the broader market.
Technical Indicators:
RSI Divergence: The Relative Strength Index (RSI) shows bearish divergence, signaling a potential reversal from overbought conditions.
Bearish Flag Pattern: There is a bearish flag forming, which typically precedes a strong breakdown. The current price action fits within this pattern, further supporting a potential downside move.
Scenario Planning:
Bearish Scenario: A confirmed break below $2,720 is expected to trigger a quick move down to $2,600. At this point, it would confirm a reversal in the current rally, potentially signaling the end of the ongoing bull trend.
Bullish Scenario (Less Likely): If prices manage to hold above $2,720 and break above the resistance at $2,748, the bull trend could resume, possibly testing the previous highs.
Key Levels and Targets:
Bounce back test: $2,474
This level represents a possible short-term rebound zone before the downtrend resumes. It aligns with previous minor support, acting as a key resistance for now.
Critical Break-Down Level: $2,720
The price has been hovering around $2,720, which is a crucial support level. A daily or weekly close below this level would likely confirm a stronger downward move.
Ultimate Target: $2,600
Once the break of $2,720 is confirmed, the next major target stands at $2,600. This level represents a deeper retracement in line with the completion of a larger cycle of profit-taking in the broader market.
Technical Indicators:
RSI Divergence: The Relative Strength Index (RSI) shows bearish divergence, signaling a potential reversal from overbought conditions.
Bearish Flag Pattern: There is a bearish flag forming, which typically precedes a strong breakdown. The current price action fits within this pattern, further supporting a potential downside move.
Scenario Planning:
Bearish Scenario: A confirmed break below $2,720 is expected to trigger a quick move down to $2,600. At this point, it would confirm a reversal in the current rally, potentially signaling the end of the ongoing bull trend.
Bullish Scenario (Less Likely): If prices manage to hold above $2,720 and break above the resistance at $2,748, the bull trend could resume, possibly testing the previous highs.
Transaction en cours
Our target done at 2600
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.