Lingrid | GOLD Weekly PRE-MARKET ANALYSISAs May closed with a long-tailed monthly candle, it's now clear that we have two consecutive long-tailed candles, which strongly suggests that the OANDA:XAUUSD is struggling to stay above the key resistance level of 2400. This pattern is a significant indication that the market is likely to continue its downward trend. Furthermore, considering the seasonality indicator, which indicates that June is typically a bearish month, we can expect a bearish move in the near future. This combination of technical and seasonal analysis suggests that we should be cautious and prepared for a potential decline.
When we take a step back and zoom out, it's clear that the gold market is consolidating within a larger range zone. As we speak, the market is trending towards the lower end of this range. On the 4H chart, we can see that the market recently completed an impulse leg down, followed by a pause that lasted for week. This pattern suggests that there's a high likelihood that we'll see a second impulse leg develop in the near future.
I believe that the market may experience a prolonged consolidation period around the 2300 level before the underlying trend becomes apparent. On the daily timeframe, we may see a broadening triangle formation developing, which could be a sign of the upcoming consolidation. However, it's essential to remember that no one can predict with certainty what will happen next. As such, we must remain vigilant and adapt our approach as new information arises.
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