Gold currently exhibits a notable bearish potential after failing to maintain the Resistance Becomes Support (RBS) zone, which previously served as a critical support area for buyers. This inability to stay above this zone clearly signals the increasing dominance of sellers in the 1-hour timeframe. Selling pressure has solidified further as the U.S. trading session approaches tonight, bolstered by the breakdown of prior upward structures. This scenario is confirmed by the Moving Average indicator that is beginning to show a sharp downward slope, along with a ZigZag pattern indicating a reversal towards a downward trend.
Furthermore, additional signals from the MACD indicator, which remains in negative territory, reinforce the notion that the bearish momentum for Gold is gaining strength and is confirmed. The failure of prices to rebound and break back above the RBS area that has been breached strengthens the narrative that buyers are indeed losing control in the market, thus creating significant opportunities for sellers to drive prices lower. Considering the convergence of these technical signals, the likelihood of a sell position remains dominant as the U.S. trading session commences, especially if prices continue to fail to breach and hold above the RBS area now acting as strong resistance.
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On the 15-minute time frame, seller control appears increasingly definitive and organized, as prices form a consistent downward-moving bearish channel. Both the ZigZag and Moving Average indicators in this timeframe align to further bolster selling pressure, indicating the potential for a continuation of declines in the intraday momentum. Based on the combination of existing technical signals, Gold seems poised to test the support level around $4.005.
Technical Reference: sell below 4,100
Potential Stop Loss 1: 4,080
Potential Stop Loss 2: 4,100
Potential Take Profit 1: 4,025
Potential Take Profit 2: 4,005
