FX.co ★ XAU/USD, GOLD

XAUUSD The spot gold daily chart is still showing a minor bear flag pattern. Gold stopped close to the 20-day moving average on Thursday, falling to a three-day low of $5,105. After being rejected from the top boundary line for the previous two days, it is ready to move below and test the lower flag boundary line. However, last Tuesdays abrupt breach of a rising bearish wedge formation is the main factor influencing expectations. The split caused a precipitous decline to $4,996. That level represented the bottom of the flag formation and an eight-day low. It also signifies important short-term assistance. An early warning signal appears below $5,015, and the flag pattern activates on a decline below $4,996. The pattern suggests a possible target of $4,592. Interestingly, that level is close to another negative target. At $4,552, that level is in line with the rising 100-day moving average. Furthermore, the rising wedge indicates that the price range surrounding the most recent swing low of $4,402 might be put to the test. When taken as a whole, these metrics point to a possible support area between $4,592 and $4,402. After a bear flag trigger, there are also higher initial downside targets. However, negative momentum can be strong enough to fall straight through the two bearish patterns that will follow through on a decline below $4,996. The latest higher swing low at $4,842 is the second, while the 50-day moving average at $4,930 is the first. The rising 100-day moving average defines the main downward goal. Since it was regained in October 2023, it has effectively represented trend support. For the current bearish correction, support is anticipated at or above the 100-day average. This level is especially significant because it supports the larger bullish trend structure that was formed when a rising trend channel broke out and a support test at the top of that channel was successfully completed. Despite the present downturn mentioned at the start of this study, the 100-day averages growing slope further emphasizes the strength of the longer-term uptrend.