Happy Friday, traders! Today, we are here with the most used trading pair analysis for you: Gold (XAUUSD). Let’s delve into the analysis.
🥇 GOLD (XAUUSD) SELL SETUP: IS THE BULL RUN OVER?
📉 Gold is showing strong signs of a bearish reversal! After weeks of moving in a clean ascending channel, gold has finally broken below its lower trendline — a classic early signal that bullish momentum may be exhausted. We saw the Market Structure Shift (MSS) occur right at the break of support, confirming that sellers are gaining control.
Adding to the bearish case, the 50-period Moving Average (MA50) on the 4-hour chart has rolled over and is now pointing firmly downward, acting as dynamic resistance. Recent candles retested that MA from below and failed to close above it, highlighting the strength of sellers defending the new downtrend.
This breakdown is not just a random dip — it’s a meaningful shift in trend structure. The price action tested the broken channel support (now resistance), rejecting it decisively. Smart Money traders often look for these confirmation retests before committing to a short, because they add probability that the breakdown is real and not a false break.
📌 Gold Trading Plan:
🔽 Sell #XAUUSD ONLY on confirmation below 3290!
- This level is a clear near-term support, and breaking it will confirm continued bearish momentum.
- Once below 3290, we expect liquidity grabs to the downside.
🎯 Target 1: 3264
- This is the first logical target, near prior support where partial profits can be taken.
- Price may bounce briefly here before continuing.
🎯 Target 2: 3217 (only if price breaks and closes below 3264)
- This is a deeper liquidity level.
- Bears will be aiming for this zone if the selling accelerates.
⚡️ Gold Key Technical Factors
XAUUSD Ascending channel breakdown
Retest and rejection = bearish confirmation
Market Structure Shift (MSS)
MA50 turned down and acting as resistance
This is a textbook breakout–retest–continuation setup for trend traders and Smart Money Concept (SMC) followers alike. Remember: patience is critical. Wait for a clean break and close below 3290 to avoid getting caught in noise or false breaks.
💬 What do you think? Are you selling #XAUUSD too?