Gold (XAUUSD) is showing clear signs of short-term weakness after losing a key support zone around 3,287 USD – which previously aligned with the rising trendline and the 61.8% Fibonacci retracement level (3,295.20 USD) of the prior downward move.
1. Price Structure and Current Pattern:
Price has formed a descending triangle and just broke below its lower boundary with strong bearish candles.
Consecutive bearish candles with short lower wicks indicate strong selling pressure with little buying interest.
After being rejected at 3,304.25 USD – the most recent swing high – price has dropped toward the 0.0% Fibonacci level at 3,280.57 USD.
2. Fibonacci and Key Price Zones:
The 3,295.20 area (Fibo 0.618) has now become a strong resistance after a failed recovery attempt.
The 3,280 – 3,275 zone is the next target for bears if no strong reversal appears in upcoming sessions.
A break below 3,275.73 may open the path for further downside toward 3,268 – 3,260.
3. Trendlines and Candle Behavior:
The short-term rising trendline (in red) has been broken alongside increasing sell volume.
The upper descending trendline (in light blue) remains intact, confirming that the overall structure is still bearish.
Suggested Trading Strategy:
Sell on rallies: Prefer short entries around 3,290 – 3,293, with a stop loss above 3,296.
Short-term target: Look for potential take-profit zones at 3,275 – 3,268.
Avoid bottom fishing unless there’s a strong bullish reversal signal such as an engulfing or hammer candle backed by volume.
Conclusion:
Gold is under visible downside pressure below key technical resistance. If the price fails to hold above 3,280, the downtrend could extend further. Traders should remain cautious of weak pullbacks and look to enter in line with the dominant bearish trend.
1. Price Structure and Current Pattern:
Price has formed a descending triangle and just broke below its lower boundary with strong bearish candles.
Consecutive bearish candles with short lower wicks indicate strong selling pressure with little buying interest.
After being rejected at 3,304.25 USD – the most recent swing high – price has dropped toward the 0.0% Fibonacci level at 3,280.57 USD.
2. Fibonacci and Key Price Zones:
The 3,295.20 area (Fibo 0.618) has now become a strong resistance after a failed recovery attempt.
The 3,280 – 3,275 zone is the next target for bears if no strong reversal appears in upcoming sessions.
A break below 3,275.73 may open the path for further downside toward 3,268 – 3,260.
3. Trendlines and Candle Behavior:
The short-term rising trendline (in red) has been broken alongside increasing sell volume.
The upper descending trendline (in light blue) remains intact, confirming that the overall structure is still bearish.
Suggested Trading Strategy:
Sell on rallies: Prefer short entries around 3,290 – 3,293, with a stop loss above 3,296.
Short-term target: Look for potential take-profit zones at 3,275 – 3,268.
Avoid bottom fishing unless there’s a strong bullish reversal signal such as an engulfing or hammer candle backed by volume.
Conclusion:
Gold is under visible downside pressure below key technical resistance. If the price fails to hold above 3,280, the downtrend could extend further. Traders should remain cautious of weak pullbacks and look to enter in line with the dominant bearish trend.
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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.