Happy Friday, dear traders! Today, we come with a technical analysis and trading signal for XAUUSD (Gold). Let’s dive into the analysis without delay.
🌉 Gold (XAUUSD) Bearish Breakout – Is the Rally Over?
After weeks of climbing within a clean ascending channel, Gold (XAUUSD) has finally shown its hand — and it looks bearish. The price has broken below the lower trendline of the channel, signaling a significant structure shift that traders shouldn’t ignore.
The breakdown isn’t just technical — it also aligns with the completion of a broader ABCD harmonic pattern, a classic sign of exhaustion in bullish trends. Price has decisively violated the lower boundary of the ABCD formation and is now testing the key 3340 support level. This area served as strong support previously, but with the current downside pressure, a breakdown here could open the gates for a deeper sell-off.
📉 Gold Trade Setup:
- Sell Entry: On a confirmed break below 3340
- 🎯 Target 1: 3305
- 🎯 Target 2: 3290
- 🔒 Suggested SL: Above 3360 (just above the broken trendline)
🔍 XAUUSD Technical Factors Supporting the Bearish View:
- Trendline Break: The ascending channel held price for weeks — its break signals a momentum shift.
- ABCD Pattern Violation: Bearish harmonic completion signals exhaustion of the previous bullish wave.
- Support Retest: The current test of 3340 could be a last stand for the bulls. If it gives way, sellers will likely dominate.
⚠️ Caution or Confirmation?
This is a textbook breakdown, but as always, confirmation matters. Traders should wait for a clean 4H candle close below 3340 before entering short positions. A bounce could happen — but momentum favors the bears for now.
🔥 What do you think, traders? Is this the end of Gold’s rally?
❤️❤️❤️ — If you’re with the bears, hit like and share your outlook!