Gold can Fail its Rally and Fall Towards 4125

Hello traders, I want share with you my opinion about Gold. The market for Gold has been through a highly complex and volatile phase after breaking down from its prior upward channel. This led to a significant fall into the support zone, followed by a strong recovery that has since pushed the price of XAU above a major ascending trend line. Currently, the asset is undergoing a corrective pull-back towards this broken trend line, setting the stage for what I believe is a critical test. In my mind, the price action is setting up a potential 'bull trap'. I expect that the price will first make a correction to the trend line, find support, and then attempt another rally. I think this rally will be exhaustive and will fail upon reaching the 4280 mark. A confirmed rejection from that peak would signal a major reversal. The subsequent decline should have enough momentum to break the major ascending trend line. Therefore, I have placed my TP for this reversal scenario at 4125. Please share this idea with your friends and click Boost 🚀

Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.