The chart shows that gold (XAUUSD) recently broke down from a clear consolidation range highlighted by the red rectangle. This range acted as a distribution zone where price repeatedly failed to break higher. Once the lower boundary of that range broke, sellers gained momentum, pushing price downward.
Price has now pulled back toward the broken structure, forming a corrective bullish move — likely a retracement before further downside. The projection on the chart suggests a lower-high formation followed by continuation to the downside.
Key observations:
Breakdown from consolidation: The range around 3960–4000 was rejected multiple times, confirming strong resistance.
Pullback to structure: Current bullish candles appear corrective, not impulsive.
Bearish projection: The chart shows expected continuation toward levels around 3929, 3900, and potentially lower.
Stop-loss area: The SL is clearly marked at 4000.234, above the former resistance zone.
Price has now pulled back toward the broken structure, forming a corrective bullish move — likely a retracement before further downside. The projection on the chart suggests a lower-high formation followed by continuation to the downside.
Key observations:
Breakdown from consolidation: The range around 3960–4000 was rejected multiple times, confirming strong resistance.
Pullback to structure: Current bullish candles appear corrective, not impulsive.
Bearish projection: The chart shows expected continuation toward levels around 3929, 3900, and potentially lower.
Stop-loss area: The SL is clearly marked at 4000.234, above the former resistance zone.
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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.