Gold has printed a Hanging Man candlestick on the daily timeframe following a sustained bullish move. This pattern typically appears near potential market tops and often signals buyer exhaustion, rather than an immediate trend reversal.
The candle’s long lower shadow shows that sellers were able to push price significantly lower during the session. However, buyers managed to recover most of the losses by the close. While this recovery confirms that bullish participation is still present, the key takeaway is the emergence of selling pressure at elevated price levels.
Chart Analysis:
Market Structure Perspective
From a broader structure point of view, the appearance of a Hanging Man near higher-timeframe resistance or all-time high zones increases the probability of a short-term correction or consolidation.
This probability strengthens if the market follows up with:
Until such confirmation appears, the prevailing bullish trend remains intact.
Key Points to Monitor
Traders should closely watch the following in upcoming sessions:
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Bearish confirmation on the daily close
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Loss of short-term support levels
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Signs of decreasing bullish momentum
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Price reaction near higher-timeframe resistance zones
The Hanging Man should be treated as a warning signal, not a standalone sell trigger.
⚠️ Risk & Confirmation Note
Candlestick patterns must always be analyzed in context. This signal should be combined with:
Confirmation is essential before forming a directional bias.
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⚠️ Disclaimer
This analysis represents my personal market view and is shared for educational purposes only.
It does not constitute financial advice or a trade recommendation. Always manage your risk accordingly.
