GOLD/USD a strong downward move (flagpole).

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Bearish Pennant Formation:
A bearish pennant is marked in red. This is a continuation pattern that typically forms after a strong downward move (flagpole).
It consists of converging trendlines following a sharp price drop, suggesting a potential continuation to the downside.
Breakout and Target:
Price appears to have broken below the pennant, signaling a potential bearish continuation.
A target is marked around $3,005.092, based on the height of the flagpole projected downward from the breakdown point.
Support & Resistance Levels:
Resistance zone around $3,264–$3,267 and upper risk level near $3,400.
Current price is around $3,240.610.
Support/target zone is around $3,005.
Trade Setup:
It appears to be a short trade setup, with the stop loss near $3,370.793 and the take profit near $3,005.092.
The red shaded area indicates potential loss zone, and green shaded area shows profit zone.
This chart suggests the trader anticipates a continuation of the downward trend if the pennant pattern plays out.

Penafian

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