Market next move

96
🔻 Disruption to Bullish Thesis

1. Resistance Zone Near Target

The "Target" area might align with a previous resistance level (historically where price has reversed or consolidated).

If price hits that zone, it could stall or reject, rather than break through.


2. Bearish Volume Divergence

While the candles are green and pushing upward, volume is not increasing significantly.

Lack of strong buying volume can suggest a weak rally — potentially a bull trap.


3. Trend Context: Larger Downtrend

The chart shows a strong prior downtrend before the recent small upward push.

This move could be a dead-cat bounce or retracement within a broader bearish move.


4. Fundamental Risk: USD Strength

If the US Dollar Index (DXY) strengthens due to macroeconomic data or Fed commentary, gold (USD-denominated) typically drops.

The calendar icons suggest upcoming US economic data, which could disrupt gold’s movement.


5. Candle Structure Shows Exhaustion

The current bullish candles are smaller compared to previous strong red ones.

This may imply momentum exhaustion before reaching the target.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.