Gold 1 h setup continuation of ascending channel

XAU/USD (Gold) – 1H Chart Analysis (March 4, 2025)
1. Market Structure & Trend Analysis
Rising Wedge Breakdown: Gold was previously in an ascending wedge pattern, which has broken to the downside.
Key Support at $2,836: This level is a significant horizontal support, and price is likely to test it again.
Lower Highs Formation: The price is making lower highs, indicating a continuation of the bearish trend.
2. RSI & Momentum Analysis
Bearish Divergence: The RSI was making lower highs while the price made higher highs, signaling weakness before the drop.
Current RSI at 62.75: The RSI has rebounded but remains below overbought levels, suggesting that there is still room for a move down.
3. Key Levels to Watch
Resistance:
$2,900 - $2,920 (Wedge breakdown retest; strong resistance zone)
$2,940 (Major resistance if price pushes higher)
Support:
$2,836 (Key level where buyers may step in)
$2,800 - $2,820 (Next major support zone)
4. Potential Trade Scenarios
📉 Bearish Scenario (Higher Probability)

If price fails to reclaim $2,900 and shows weakness, expect a move toward $2,836.
Short Setup:
Entry: $2,895 - $2,900 (retest of breakdown zone)
Stop-loss: Above $2,915
Target: $2,836, then $2,820
📈 Bullish Scenario (Lower Probability)

If price reclaims $2,900 and holds above, we could see a retest of the $2,920 - $2,940 zone.
Long Setup:
Entry: Above $2,900 with confirmation
Stop-loss: Below $2,885
Target: $2,920 - $2,940
5. Conclusion & Strategy
Short-term bias: Bearish towards $2,836, with further downside possible.
Trade idea: Look for rejection at $2,900 to confirm shorts.
Risk management: Watch for false breakouts before entering trades.