Gold is experiencing a sustained decline following the breakdown of the bullish order block at 2640.0. This decline, combined with a bearish breakout from the bullish wedge that had defined price action since August, indicates a significant shift in market sentiment toward the downside.
In October, Gold tested the resistance trendline of the bullish wedge, reaching an overbought condition on the Relative Strength Index (RSI). A swing high formed at this level, reflecting the strong resistance posed by the trendline. This led to a decline in price below the 9- and 21-period Moving Averages, signaling the onset of a bearish trend.
The initial decline from 2789.0 appeared to be a temporary pullback, as the price momentarily rebounded off the bullish order block at 2673.0. However, a rejection at this level quickly reversed the trend. The subsequent bearish momentum broke through both the bullish order block and the wedge’s trendline support. This movement caused the 9-period Moving Average to cross below the 21-period, reinforcing the bearish shift.
Gold Short-Term Trend: Bearish
Following the wedge breakout, the price retraced to test a bearish order block, solidifying the downward momentum. A bearish breaker block has now formed at 2640.0, which is expected to sustain additional selling pressure if retested. Traders relying on forex signals can monitor these key levels to anticipate further bearish moves and refine their strategies.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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