Gold can be seen to be creating a rising wedge.
November marked the largest monthly candle on gold since September 2023, signaling a potential shift in momentum. If December closes with another bearish candle, bullish buyers may start to reconsider their positions, as a deeper correction in the bullish trend is becoming evident.
On the 4-hour timeframe, we can see a significant liquidity sweep followed by a sharp push downward. Currently, price action is consolidating within a rising wedge, a pattern often associated with a potential reversal. A further decline is anticipated toward the 2639–2637 level, where a key support zone aligns with a 4-hour and 1-hour engulfing candle.
From this support, a temporary rise is expected toward 2677, meeting both a 4-hour engulfing candle and the upper boundary of the rising wedge. This level presents a strategic area to consider short positions, targeting the next demand zone and support level around 2530.
On the 4-hour timeframe, we can see a significant liquidity sweep followed by a sharp push downward. Currently, price action is consolidating within a rising wedge, a pattern often associated with a potential reversal. A further decline is anticipated toward the 2639–2637 level, where a key support zone aligns with a 4-hour and 1-hour engulfing candle.
From this support, a temporary rise is expected toward 2677, meeting both a 4-hour engulfing candle and the upper boundary of the rising wedge. This level presents a strategic area to consider short positions, targeting the next demand zone and support level around 2530.
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