Gold rallied to 2780.0 before encountering signs of exhaustion. A bearish reversal has since taken hold, signified by a break of the bullish trendline and a shift in market structure. The recent price increase appears to be a corrective move within the newly established bearish trend.
The bearish reversal was initiated following the formation of a head-and-shoulders pattern. This reversal pattern coincided with the Stochastic indicator entering overbought territory in October, signaling a potential trend change.
The price subsequently fell below the Moving Averages (Periods 9 and 21), confirming bearish dominance. Although the bullish order block at 2643.0 temporarily slowed the decline, persistent selling pressure eventually breached this level, pushing the price down to 2531.0.
Gold Short-Term Trend: Bearish
On lower timeframes, the trend displays a temporary bullish pullback as part of the broader bearish movement. The price has recently tested a bearish order block, which is expected to amplify selling pressure and realign with the overall bearish trend. This order block serves as a critical resistance level, suggesting a continuation of the downtrend once the corrective phase concludes.
Traders leveraging forex signals should watch for further bearish momentum, particularly as the market approaches significant resistance levels within the bearish structure.
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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