Gold – Potential Bearish Breakdown in Progress

Gold is currently forming a potentially dangerous and strongly bearish setup. After a strong upswing that started with an inverse head and shoulders pattern (marked with orange color), the price reached its minimum bullish target by touching the upper boundary of the descending channel (red line). That touch now appears to have marked a local top.

The most recent development is a clear rejection from the upper red resistance line, confirming its technical strength. What follows is even more concerning: gold is now breaking below the blue uptrend line, which has guided the bullish structure since the breakout.

This combination — a rejection from resistance and simultaneous support breach — paints a bearish picture. It implies the upswing momentum is weakening significantly and that sellers are regaining control.

While it’s difficult to project the exact depth of a potential move, the lower red line of the channel seems like a plausible and technically consistent target.

Source: https://www.axiory.com/analytics/technical-analysis/gold-potential-bearish-breakdown-in-progress