XAUUSD Bearish Reversal: Double Top and Golden Pocket Breakdown!

20 Kas

XAUUSD - 2Hr

The analysis suggests the market is showing bearish signals, particularly after price rejected at key resistance zones during the Asian session. The Ascending Channel indicates an upward trend, but the breakdown from the channel signals that bullish momentum is weakening.

Key Elements Driving the Short Trade:

1. Golden Pocket (0.5–0.618 Fib):
The price has reached the Golden Pocket (between 0.5 and 0.618 Fibonacci levels), a strong reversal zone. Rejections in this zone often signal a potential change in trend, especially when combined with other bearish signals.

2. MML Major Resistance:
The MML Major Resistance suggests that the market is encountering a significant obstacle, further validating the potential for a reversal.
3. Strong Resistance:
The price is facing Strong Resistance at higher levels, which is causing the price to struggle and reject, confirming the reversal bias.

4. Double Top:
The Double Top pattern at the Golden Pocket indicates that the price has attempted to break higher twice but failed, signaling weakness and a likely bearish shift. This pattern often leads to a trend reversal.

5. Price Gap:
A Price Gap further confirms a shift in market sentiment, with a possible imbalance or sudden price movement that reinforces the bearish view.

Current Price Action:
During the Asian session, price broke down from the Ascending Channel, signaling a shift from an uptrend to a potential downtrend. The breakdown occurred near Equilibrium and the 50% Fib retracement, reinforcing the idea of a reversal as this is where price typically finds resistance in a trend. The Double Top at the Golden Pocket suggests a strong potential for a downward move as the price has failed to continue higher. Currently, the price is above a Strong Pivot Point, which is acting as support, potentially leading to a short-term pullback or consolidation before the bearish move continues.

Interpretation:
The combination of the Golden Pocket, Double Top, and rejection at key resistance levels gives a strong bearish signal. The ideal entry point would be after confirmation of price breaking below the Strong Pivot Point or failing to sustain above it, with a target near the next support or at Price Gap, as mentioned Price target. Place the stop loss just above the Double Top or near the Strong Resistance zone to limit risk in case the market reverses back up.

In conclusion, the market is showing signs of a bearish reversal after rejection at multiple key levels, and the analysis points toward potential short opportunities with proper risk management.

"Stick to Your Plan and Manage Risk, Happy Trading!"

21 Kas

İşlem kapandı: durdurma seviyesi

Since the price has broken above the major resistance, this analysis is no longer valid. Stay tuned for updates!