Lingrid | GOLD Weekly Market Analysis: Consolidation Continues

6 days ago

GOLD has developed a double top pattern, marking a significant shift from the previous consolidation phase. The recent rejection from the $3,400 resistance zone has created a bearish reversal structure that's now testing critical support levels. 4H chart reveals a clear double top formation with peaks around $3,400, followed by a decisive breakout below the flag pattern that previously suggested continuation. This technical deterioration represents a major shift in market structure, with the upward trendline now serving as resistance rather than support.

Current price action at $3,309 sits dangerously close to the key support level at $3,245. A break below this zone would likely trigger accelerated selling toward the major support area around $3,120, representing the bottom of the recent consolidation range. Previous weekly highs (PWHs) around $3,354 now serve as immediate resistance, with the double top peaks at $3,400 representing the more significant barrier. Any recovery attempts will likely face selling pressure at these levels, creating a challenging environment for bullish momentum.

The upward trendline breach is another bearish development, as this line had provided support throughout the entire rally from the cycle lows. Its violation suggests a potential shift in the primary trend structure, though the major support at $3,120 remains intact. However, the major support confluence around $3,120 could provide a lifeline for bulls. This level represents multiple technical factors including previous significant lows and the bottom of the recent consolidation range, making it a natural area for buying interest to emerge.

The current setup suggests gold is entering a more challenging phase where rallies may be sold rather than bought. The shift from continuation to reversal patterns indicates a potential change in market sentiment that could persist until major support levels are tested and either hold or break decisively.

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

5 days ago

Trade active

XAUUSD formed a double top near the resistance trendline at 3,355, followed by a failed breakout and rejection. Price is now slipping back below the breakout zone while retesting the upward trendline. A breakdown below 3,300 could confirm bearish continuation toward 3,265 support.

📈 Key Levels
- Sell zone: 3,350–3,360
- Sell trigger: bounce from trendline with strong bearish candle
- Target: 3,265
- Buy trigger: confirmed rejection near 3,265

💡 Risks
- Breakdown of trendline may trigger sharper losses toward 3,120
- Weak reaction at support weakens bullish recovery
- Reclaiming 3,355 needed to shift bias upward again