Gold May Be Building a Reversal Inside This Falling Wedge

Jun 4

Over the past four to five days, Gold(XAUUSD) has been drifting downward with very low momentum.

Currently, Gold is moving near a heavy support zone($4,502-$4,351) and close to the bottom of a descending channel.

From a classical technical analysis perspective, if we look at Gold’s chart on the 1-hour time frame, it seems to be forming a falling wedge pattern. If it breaks the upper line and the resistance zone($4,497-$4,476), we could expect an upward move.

From an Elliott Wave theory perspective, Gold appears to be completing its corrective waves within the falling wedge pattern. After that, we can anticipate the next five-wave impulse upward.

I expect Fold to rise from the Potential Reversal Zone(PRZ)[$4,448-$4,415] or if it breaks the upper line of the falling wedge pattern, we could expect a stronger upward move.

First Target: $4,491

Second Target: $4,526

Stop Loss(SL): $4,399

Points may shift as the market evolves.

Note: Geopolitical developments in the Middle East could have a swift impact on Gold’s trend.

What’s your view on Gold? Can it hold its heavy support zone($4,502-$4,351), or should we expect a sharper decline in Gold??

💡 Please respect each other's opinions and express agreement or disagreement politely.

📌 Gold Analyze (XAUUSD), 1-hour time frame.

🛑 Always set a Stop Loss(SL) for every position you open.

✅ This is just my idea; I’d love to see your thoughts too!

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Jun 4

Trade active

Trade was activated after breaking the upper line of the falling wedge.

Jun 5

Trade closed: stop reached

Gold, following the sharp decline in U.S. indices—especially the S&P 500—also came under pressure and started to drop.

Now, let’s refer back to the weekly analysis I shared on April 24, which might give you a clearer view. On the weekly time frame, gold is currently breaking its support line, and in less than two hours, the weekly candle will close. If the weekly candle closes below the support line, we could expect further declines in the coming weeks. The key support level ahead for gold is $4,180.

Support zone($4,401-$4099)