Gold (XAU/USD): Bearish Breakdown Watch

Mar 8

Hi!

The current chart for Gold indicates a potential trend reversal following a heavy rejection at the $5,400 supply zone ("DP"). The price is now squeezing into a narrow consolidation pattern, signaling an imminent move.

Analysis & Trade Setup

• The Pattern: A bearish pennant has formed right against the primary ascending channel support. This typically acts as a continuation pattern for the recent downward impulse.
• The Trigger: A decisive break below the lower trendline of the pennant (approx. $5,100) would confirm the bearish thesis.
• The Target: If the breakdown occurs, the primary objective is the green support "target" zone between $4,875 and $4,925.

Summary: Momentum has shifted toward the sellers. Watch for a high-volume break of the current support to trigger a short entry toward the $4,900 level.

Mar 30

Trade closed: target reached