GOLD (XAUUSD): One More Bearish Wave is Coming?! 🥇

2 may

https://www.tradingview.com/x/FG38xeMf/

I would say that the month of April was very weak for Gold.
Even though the market updated the ATH and we saw quite a strong
rally at the beginning of the month, bulls quite quickly lost the momentum.

We can even conclude that the rally finally stopped and the market started to consolidate within a horizontal range.

For the last 10 days we see a steady shift in sentiment.
The price formed the first strong bearish candle and we also set the first lower high.

This week, we see the sign of strength of the sellers again with a formation of one more strong bearish candle.

After a strong bearish movement on Tuesday, we can also confirm a formation of a bearish reversal pattern: an inverted cup & handle formation.

At the moment, the last resort for the buyers is a wide horizontal demand zone: 2265 - 2290. That structure, is also the neckline of the pattern.

Its bearish violation will confirm the initiation of a correctional movement on Gold.
A daily candle close below the underlined area will push the prices lower.

The goal for the sellers will be 2220 support.

I will change my bias to bullish, only in case of a violation of a resistance area based on a handle.
If a daily candle closes above that, I will anticipate a bullish continuation.

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