The price of gold appears to be losing momentum after failing to break through the upper boundary of the Bollinger Bands in the latest trading sessions. Selling pressure has emerged as the Commodity Channel Index (CCI) indicates an overbought condition, signaling a potential reversal in the near future. The rejection from this technical resistance reinforces the idea that the market is beginning to respond cautiously to overbought levels, particularly amid decreasing uncertainty in global sentiment.
If corrective pressure continues, the nearest support area within the mid-range of the Bollinger Bands may become the next target for movement. Market participants are advised to monitor further confirmations from price action and trading volume before taking positions. In the short term, this correction could present opportunities for short-term traders.
Recommended
Recommended
Recommended
Recommended
Gold’s movement on the 15-minute time frame shows signs of potential weakness after being rejected from the upper limit of the currently flat Bollinger Bands, indicating the market is in a consolidation phase. This rejection is supported by the Stochastic indicator, which is beginning to enter the overbought territory, signaling a potential for selling pressure in the short term. With this technical combination, gold is at risk of correcting towards the nearest support level of 3.218.
Technical Reference: sell below 3.255
Potential Stop Loss 1: 3.250
Potential Stop Loss 2: 3.255
Potential Take Profit 1: 3.227
Potential Take Profit 2: 3.218
