Gold Price Forecast: Key XAUUSD Levels to Watch After Daily Close
The gold price forecast (XAUUSD) is flashing key signals after the daily close. Traders are watching the charts closely, as gold forms a spinning top candlestick on the monthly timeframe, hinting at market indecision. This pattern, combined with recent price action, suggests that a major move might be brewing. Let’s dive into the latest gold price levels and potential trade setups.
Monthly Chart: Spinning Top Signals Consolidation
On the monthly chart, gold is forming a spinning top candlestick, a classic sign of market consolidation. This indicates that gold (XAUUSD) is currently in a tight range, with no clear trend direction. The spinning top suggests that both buyers and sellers are fighting for control, but neither side has gained dominance yet.
Historically, spinning tops on the monthly chart signal a potential reversal or a period of sideways action before a decisive move. Traders should approach the market cautiously, as this pattern could precede a significant sell-off in the coming weeks.
Weekly Chart: Strong Close but Beware the Trap
Looking at the weekly chart, the previous candle closed strongly, suggesting bullish momentum. However, traders should not assume that the gold price will continue higher. The monthly spinning top pattern indicates that the market is not yet ready for a sustained bullish breakout.
The market has been trading in a tight range between 3200 and 3373 for the past four weeks. This range-bound behavior further confirms the consolidation phase, and traders should be prepared for a potential downside move.
Gold Price Levels to Watch: Sell Setup at 3356
For today’s trading session, the key sell level to watch is 3356. If gold (XAUUSD) approaches this level, traders should consider initiating a short position, targeting 3336 as the first take-profit zone. The recommended stop loss is below the entry candle’s low to manage risk effectively.
Additionally, traders can use the 5 EMA setup for confirmation. If you are looking for a reliable trading account to execute these strategies, consider opening an account with Exness. They offer tight spreads, fast execution, and excellent support. Click here to open an Exness account now.
Analyst Outlook: Gold Price Likely to Sell in the Coming Weeks
Analysts suggest that gold (XAUUSD) could face heavy selling pressure in the upcoming days or months, as the spinning top on the monthly chart signals potential weakness. Traders should look for sell opportunities rather than chasing bullish breakouts.
While the short-term momentum may look strong on the weekly chart, the bigger picture indicates caution. Stay disciplined, follow your plan, and watch key levels like 3356 for potential sell setups.
Key Takeaways for Gold Price Forecast (XAUUSD)
- Monthly Chart: Spinning top candlestick suggests consolidation and indecision.
- Weekly Chart: Strong close, but no clear bullish breakout yet.
- Range Levels: Market has been consolidating between 3200 and 3373 for the past 4 weeks.
- Sell Level to Watch: 3356, with a target at 3336.
- Analyst Outlook: Expect selling pressure in the coming days and weeks.
- Trade Tip: Use the 5 EMA setup for confirmation. For a reliable trading account, open an Exness account here.