The Gold Spot (XAU/USD) price action is currently at a crucial inflection point after consolidating in a rising wedge pattern between ascending support and horizontal resistance. This type of structure typically indicates a strong directional breakout is likely, and the current daily candle shows a close below the ascending support, signaling a potential bearish breakdown confirmation.
🔽 Bearish Breakdown Scenario (Confirmed Below 3250)
If price sustains below the 3250 support breakdown level, it confirms a bearish breakdown from the wedge. The height of the wedge (distance between the base of the move and the resistance) is used to project the downside target, giving us key levels to monitor:
This move suggests that gold could enter a deeper correction if buyers fail to reclaim the ascending structure quickly.
🔼 Bullish Breakout Scenario (Above 3500)
On the flip side, if bulls manage to push price back above the 3500 level, it would invalidate the current bearish momentum and confirm a bullish breakout. The projected upside targets are based on the same measured move logic:
A close above 3500 with volume would set the tone for a fresh rally toward new highs.
🧭 Strategy Outlook
Always wait for a strong daily candle close beyond the breakout/breakdown levels before initiating any trades
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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🔽 Bearish Breakdown Scenario (Confirmed Below 3250)
If price sustains below the 3250 support breakdown level, it confirms a bearish breakdown from the wedge. The height of the wedge (distance between the base of the move and the resistance) is used to project the downside target, giving us key levels to monitor:
- Breakdown Confirmation: Below 3250.00
- Target 1: 3111.67
- Target 2: 2990.31
- Projected Downside Target: 2861.24
This move suggests that gold could enter a deeper correction if buyers fail to reclaim the ascending structure quickly.
🔼 Bullish Breakout Scenario (Above 3500)
On the flip side, if bulls manage to push price back above the 3500 level, it would invalidate the current bearish momentum and confirm a bullish breakout. The projected upside targets are based on the same measured move logic:
- Breakout Confirmation: Above 3500.00
- Target 1: 3621.90
- Target 2: 3741.84
- Projected Upside Target: 3855.78
A close above 3500 with volume would set the tone for a fresh rally toward new highs.
🧭 Strategy Outlook
- Short Bias (active): Entry below 3250; SL above 3300; TP at 3110 / 2990 / 2860
- Long Bias (if reversal): Entry above 3500; SL below 3460; TP at 3620 / 3740 / 3850
Always wait for a strong daily candle close beyond the breakout/breakdown levels before initiating any trades
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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📈 Trade Smarter with TradZoo!
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📲 Android App: bit.ly/TradZooApp
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🍎 iOS App: bit.ly/TradZoo-iOS-App
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
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.