Market next move

70
. False Breakout Risk (Bull Trap)

While the chart suggests an impending breakout, the market may be setting a bull trap:

Watch for a brief move above the consolidation zone that quickly reverses.

This could lure in buyers before a sharp downturn.


2. Volume Analysis Contradiction

Volume in the consolidation box seems to be decreasing.

A strong breakout typically needs a volume surge, which is currently absent.

Lack of commitment from buyers might suggest indecision or exhaustion.


3. Bearish Divergence Possibility

If you overlay an RSI or MACD indicator:

It might show bearish divergence (price making higher highs, indicator making lower highs).

This often precedes reversals.


4. Key Resistance Ahead

The area just above the consolidation box (around 3,320–3,340) could act as strong resistance based on historical price action.

Price might reject this zone rather than continue higher.


5. Fundamental Risks

Upcoming U.S. economic data (as hinted by the U.S. icon on the chart) may trigger unexpected volatility.

Hawkish Fed tone or strong dollar news could push gold down unexpectedly.

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