Gold (XAUUSD) Technical Analysis: Gold closed the previous week at $3,024.13 per ounce, reflecting a modest upward move. However, the current market structure suggests that gold is in a bearish trend. The price is trading below the key Moving Average (MA) crossovers, which indicates a lack of strong upward momentum. Additionally, the MACD (Moving Average Convergence Divergence) indicator further reinforces the bearish outlook, as it shows signs of downward momentum in the market.
Considering these technical signals, a bearish strategy could be considered. Traders may look to sell on any further decline in the price of gold. A potential entry point for selling could be around the $3,016.22 per ounce level, which could provide an opportunity to capitalize on the ongoing weakness in the market. The price could then move toward the next key support area around $3,005.48 per ounce, where traders may look to take profits. This support zone has the potential to act as a critical turning point, should the bearish trend continue.
Gold Technical Analysis (XAUUSD) : Trading Strategy :
For risk management, it is crucial to set a stop-loss at the $3,033.73 per ounce level. This stop-loss level serves as a safeguard in case the market reverses and moves against the bearish position, limiting potential losses. By using this stop-loss, traders can maintain a controlled risk-to-reward ratio while navigating the market’s current bearish phase.
Overall, the outlook for gold remains bearish in the short term, with key support levels near $3,016.22 and $3,005.48 per ounce. Traders should monitor the MACD and price action closely for any signs of a reversal or further downward movement in the coming sessions.
Gold Technical Analysis (XAUUSD): On the Other Side
On the other hand, if the $3033.73 buy zone is broken, the price may head towards the $3041.07 zone.
Gold Technical Analysis (XAUUSD): Resistance and Support Levels
- Second Resistance: 3030.10
- First Resistance: 3027.80
- Pivot Level: 3025.90
- First Support: 3023.60
- Second Support: 3021.70
