Gold is currently trading below a descending trendline, indicating that sellers are still in control of the short-term trend. Price has recently bounced from the 3,972 support and is moving toward a key supply/resistance zone around 4,040, where the descending trendline also intersects. This confluence makes the area important to watch for a potential bearish reaction.
Trade Idea (Educational):
Entry: 4,040
Stop Loss: 4,075
Target: 3,950
The bearish outlook remains valid only if price respects the resistance zone and fails to break above the trendline. A rejection with bearish confirmation, such as a bearish engulfing candle or lower high, could increase the probability of a move toward the 3,950 target.
However, if price closes decisively above 4,075, the bearish setup would be invalidated, suggesting buyers have gained momentum and the market structure may shift.
Key Levels:
Resistance: 4,090
Entry Zone: 4,040
Support: 3,972
Target: 3,950
Trade Idea (Educational):
Entry: 4,040
Stop Loss: 4,075
Target: 3,950
The bearish outlook remains valid only if price respects the resistance zone and fails to break above the trendline. A rejection with bearish confirmation, such as a bearish engulfing candle or lower high, could increase the probability of a move toward the 3,950 target.
However, if price closes decisively above 4,075, the bearish setup would be invalidated, suggesting buyers have gained momentum and the market structure may shift.
Key Levels:
Resistance: 4,090
Entry Zone: 4,040
Support: 3,972
Target: 3,950
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Join my Telegram for daily Forex & XAUUSD trading signals and market insights: t.me/ApexMarketExpert11
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.