technical analysis chart for Gold (XAUUSD) on a 2-hour timefram

technical analysis chart for Gold (XAUUSD) on a 2-hour timeframe using TradingView. Let's break it down and analyze the key insights:


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📉 Overall Trend

Currently bearish with lower highs and lower lows.

Price is struggling to break above the resistance around $3,340–$3,345.



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🔍 Key Observations

1. Sell Zone (Red Arrow Marks):

Multiple sell signals shown with red arrows where price rejected the upper resistance levels.

Most recent rejection happened just above $3,328, where price failed to break higher.



2. Support Levels:

Strong support identified around $3,298, tested multiple times.

Next support zone appears near $3,280, shown with a projected downward arrow.



3. Pattern Formation:

A Head and Shoulders pattern may be forming — a bearish reversal signal.

Alternatively, this also looks like a range or a bearish flag in a continuation of the prior downtrend.



4. Volume Analysis:

Noticeable increase in bearish volume on recent candles, supporting the downward movement.

Bullish volume appears weaker in comparison.





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🔮 Possible Scenario (Bearish Bias)

If the price fails to reclaim and close above $3,328–$3,330, a drop to $3,298 is likely.

If $3,298 breaks with strong volume, next target could be around $3,280 or even lower as marked by the blue arrows.

Measured move from the top to the neckline supports this downside projection.



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📌 Key Levels to Watch

Type Level

Resistance $3,328 – $3,345
Support $3,298.26
Target $3,280 – $3,264
Entry Signal Below $3,298 with volume



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✅ Strategy Suggestion

Short Bias: Wait for a breakdown below $3,298 with strong volume confirmation.

Invalidation: If price closes and holds above $3,345, bearish setup fails.

Risk Management: Place stop-loss above $3,345, target $3,280–$3,264.



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