FX.co ★ HAPPY KILLER | XAU/USD, GOLD

GOLD Technical Analysis (M30 Timeframe) Based on the provided M30 chart for GOLD, the market is exhibiting signs of a potential near-term reversal or consolidation following a significant upward move. The price action shows the asset trading near the top of its recent range, having retreated from a high of approximately 3852.60 to current levels around 3844.87. This pullback is occurring just below a key resistance level, suggesting a pause in the bullish momentum. The technical indicators are sending mixed but cautionary signals. The MACD(12,26,9) reading of 7.368, while still positive, has declined from its previous value of 6.124, indicating that bullish momentum is decelerating. This bearish divergence often precedes a short-term pullback. Meanwhile, the RSI(14) sits at 67.36, which is in the upper, bullish region but has not yet crossed into overbought territory above 70. This leaves room for either a continuation or a reversal, but the fading momentum from the MACD suggests the latter is more likely in the immediate future. The price is currently caught between the local support near 3843.12 and the recent high, creating a critical decision point for the next directional move.

Trade Setup Summary: • Scenario: A bearish pullback towards the first significant support level. • Entry Trigger: A confirmed break below the recent low/support at 3843.12. • Profit Target: Initial target at the next support zone around 3830.50. A more substantial target would be near 3820.00. • Stop Loss: Placed just above the most recent swing high, around 3853.00, to protect against a false breakdown and a resumption of the uptrend. • Risk: The trade aligns with the bearish momentum divergence on the MACD. A failure to break down, with the price instead holding above 3845 and the RSI climbing back above 70, would invalidate the bearish setup and suggest a continuation of the uptrend towards higher resistance levels.