Rising Wedge Broken - What's Next For Gold?

Gold (XAU/USD) is currently trading around $3,296, testing a major support zone after breaking down from a rising wedge pattern. The market is at a pivotal point, and the next move could define the short-term trend for Gold.

🔍 Technical Overview (1H Chart)
• The chart reveals a classic rising wedge pattern, a bearish reversal setup, which has now broken to the downside.
• Price is now hovering at the critical horizontal support zone near $3,295, which has acted as a key level several times in the past.
• A significant volume spike has accompanied the latest move down, highlighting strong selling pressure.

🟢 Bullish Case

If Gold holds above the $3,295 support zone, we could see a bounce and bullish continuation, targeting:
• Target 1: $3,315 (recent high)
• Target 2: $3,330 (next resistance zone)

Confirmation for this setup would require:
• A bullish reversal candle
• Increase in buying volume
• Break above minor intraday resistance levels

🔴 Bearish Case

If price breaks and closes below $3,294 with strong volume:
• Expect a sharp move lower toward $3,280 and potentially $3,260.
• The breakdown would validate the rising wedge pattern and confirm bearish momentum.


📊 Volume Insight

The recent red candle is accompanied by high volume, signaling strong participation by sellers. This increases the risk of a downside continuation unless immediate buying steps in.

🧠 Trading Plan Suggestion

📈 Long Setup
• Entry: Above $3,300 (after bullish confirmation)
• Stop-Loss: Below $3,294
• Take-Profit: $3,315 / $3,330

📉 Short Setup
• Entry: Below $3,294 (after breakdown candle)
• Stop-Loss: Above $3,300
• Take-Profit: $3,280 / $3,260

🔗 Final Thoughts

Gold is at a decision point. A bounce could attract bulls for a short-term rally, while a breakdown might trigger accelerated selling. Let the price confirm the move before entering, and manage risk wisely.

📅 Watch the next 1–2 candles closely — they will reveal the next direction.