Gold can continue to decline inside downward channel

Hello traders, I want share with you my opinion about Gold. The price action for Gold has been dictated by a large downward channel since the last major peak was established at the 3380 resistance level. This bearish structure has effectively contained the market, guiding it through a series of impulsive declines and corrective rebounds between its well-defined support and resistance lines. After the most recent upward rebound originated from the lower boundary of the channel, the price has been in a corrective rally, now approaching a formidable confluence of resistance. This critical area is formed by the intersection of the channel's descending resistance line and the major horizontal seller zone around 3380. The primary working hypothesis is a short scenario, which is based on the expectation that this powerful resistance will hold and cause the current corrective rally to fail. A confirmed rejection from this zone would validate the integrity of the downward channel and signal that the dominant bearish trend is set to resume. This would likely trigger the next major impulsive fall, which is expected to break through the immediate support level at 3330. Therefore, the TP for this continuation scenario is logically placed at the 3290 level, a target that represents a new lower low within the channel's structure and a prudent objective for the anticipated move. Please share this idea with your friends and click Boost 🚀

Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.

Trade active

Good! Price continues to decline inside downward channel.

LegionQ8

🔷Join my telegram channel for free - bit.ly/4g4wovR

💰Want receive more profitable signals for Crypto & Forex market, write me PM 👉 bit.ly/4fNijD8

ThinkMarkets Ambassador Join & explore: bit.ly/3S4HwPq

Also on:

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.

LegionQ8

Also on: