Lingrid | GOLD Weekly OUTLOOK: MARKET Continues CONSOLIDATING

XAUUSD market made a notable decline over the week, but it has now rebounded from the key support level at 2300. It's probable that we might see further consolidation because any market cannot move straight up for a long time; it moves in ebbs and flows. This consolidation will likely involve the typical sideways movement and market noise of the gold market. Following a rapid price surge, establishing support and resistance levels prior to attracting new bulls becomes essential. I think while geopolitical factors could impact the market, the massive downside risk might be expected to be minimal, even though we can expect some volatility in the market.

Looking at the weekly timeframe, we can see that a fakey pattern has formed, with a false breakout of the previous two weeks' lows. Despite this, last week saw some strong bearish movements. When we examine the daily timeframe, the candle from last Monday indicates bearish pressure. My prediction is that the market may experience a two-legged pullback to retest the April open prices. A look at the 4H timeframe shows a potential bearish flag pattern, suggesting that the market could move lower due to its failure to close above the key level at 2350. It is important to observe the monthly candle, as a long-tailed close could signify a deeper pullback ahead. In general, I anticipate a sideways movement in the market, and if it retests the next key resistance zone around 2360-2370, we may consider shorting the market.


Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Comment:

As you can see, the market has cooled down. It is moving sideways between the 2300 and 2350 price ranges. I think the market might slowly climb up toward the last Friday highs. There could be resting liquidity above the resistance zone at 2350. This is the area where a structure shift occurred. If you zoom out, you can see that the price was fluctuating around the 2360 price level, and the market was pushed down a couple of times from this level. I expect to move up, grab the liquidity, then move downward to test the support zone below 2300. My goal is a support level at 2310.000

Trade closed: target reached:

Gold reached the target level