The price is bouncing in the ascending parallel channel and as you see in the 4H chart, price failed to reach the upper band of the channel in its last upside move and is dropped.
Moreover, we can clearly see there is more downside pressure because if we take a look at the number of bullish and bearish candles, the bullish ones are more which means the buyers are making more effort to keep the price up.
On the other hand, a reversal double top pattern is seemed to be created in the channel and the yellow support level at 1798.00 is the neckline.
If price broke the support level at 1798.00 and also broke the ascending channel and closed a bearish confirmation candle below the mentioned levels, we can expect a drop first to 1790.00, and in the case of a downside breakout on this level, the next target for XAUUSD is around 1765.50
Moreover, we can clearly see there is more downside pressure because if we take a look at the number of bullish and bearish candles, the bullish ones are more which means the buyers are making more effort to keep the price up.
On the other hand, a reversal double top pattern is seemed to be created in the channel and the yellow support level at 1798.00 is the neckline.
If price broke the support level at 1798.00 and also broke the ascending channel and closed a bearish confirmation candle below the mentioned levels, we can expect a drop first to 1790.00, and in the case of a downside breakout on this level, the next target for XAUUSD is around 1765.50
Note
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.
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.