Gold continues to face selling pressure after it failed to surpass the resistance levels above the bearish channel. This scenario highlights that the buying strength has not yet been adequate to shift the trend direction, while selling pressure keeps the pricing in a downward trajectory. The price movement that is again trapped within the bearish channel suggests a heightened potential for deeper corrections in the short term, especially after prior attempts at a rebound did not materialize significantly.
From a technical perspective, the Moving Average (MA) indicators still display a downward trend consistent with the Zigzag signals on the 1-hour timeframe, reinforcing a prevailing bearish sentiment. Should the selling pressure persist, Gold may re-test the nearest support levels as the next target before determining its subsequent direction. Traders are encouraged to observe price reactions in the vicinity of this support, as a breakout below could lead to extended declines toward lower levels.
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Gold remains under selling pressure during the European session, with prices continually fluctuating within the bearish channel. The ZigZag indicator shows a consistent downward pattern, while the flattening Moving Average (MA) underscores the continuing dominance of the downward trend. This combination of technical signals indicates that the bearish momentum remains strong, thus providing Gold with the opportunity to further weaken toward the support levels around $3,930 in the near future.
Technical Reference: sell while below 4,010
Potential Stop Loss 1: 3,998
Potential Stop Loss 2: 4,010
Potential Take Profit 1: 3,945
Potential Take Profit 2: 3,930
