GOLD XAUUSD Bearish Flag Pattern

Gold is currently trading around $2387, having formed a bearish flag pattern on the chart. This pattern suggests a potential continuation of the downtrend.

The bearish flag pattern in gold suggests that the market is likely to break out below the lower boundary of the flag, potentially targeting $2367 or lower. This breakout is often accompanied by increased volume and momentum, confirming the continuation of the downtrend.

Trading Strategy:
Sell signal: Enter a short position when the price breaks out below the lower boundary of the flag, around $2380.
Stop-loss: Set a stop-loss above the upper boundary of the flag, around $2396.
Target: Set a target based on the height of the flagpole, projected from the breakout point, potentially targeting $2367 or lower.

Risk Management:

Set a stop-loss to limit potential losses if the breakout fails.
Adjust position size based on market volatility and risk tolerance.
Consider scaling out of the position as the target approaches to lock in profits.