The price of gold has faced selling pressure after failing to breach the upper limit of the Bollinger Bands, indicating potential short-term corrections. The Stochastic indicator, sitting in the overbought territory, reinforces the likelihood of a decline, suggesting that prices have reached an exhausted buying phase.
This reaction suggests that market participants are beginning to take profits following the previous rally. If the selling pressure persists, gold risks dropping toward the nearest support level, with key psychological thresholds that traders should monitor.
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The Commodity Channel Index (CCI) is displaying a sharp decline from the overbought area on the 15-minute time frame, pointing to weakening bullish momentum and increasing chances of a downward correction for gold. The selling pressure intensifies as buying interest decreases at elevated levels, which could lead to profit-taking activities from traders. Should the selling continue, gold may test the nearest support level, targeting a downward move towards 3.018.
Technical Reference: sell below 3.042
Potential Stop Loss 1: 3.038
Potential Stop Loss 2: 3.042
Potential Take Profit 1: 3.022
Potential Take Profit 2: 3.018
