Gold Forming Bearish Three Drives Pattern Below Channel Midline

Hi team!

Gold has formed a double top near the upper boundary of a long-term ascending channel, signaling potential exhaustion of the bullish momentum. After breaking below the local support and retesting it, price created a lower high, which confirms a short-term bearish structure.

Currently, the market is consolidating below the midline of the new channel. The recent sequence of moves is forming a potential Three Drives pattern, where Drive 1 and Drive 2 are already complete, and a possible Drive 3 could be developing.

If price fails to reclaim the main support zone around $4,000–$4,050, we can expect a continuation to the downside toward:

1. $3,815 – the first key support level and measured target for Drive 3.
   
2. $3,604 – the next major support zone and lower boundary of the broader channel.
   

As long as price remains below the recent swing highs, the bearish scenario remains valid. A clear break above the midline of the channel would invalidate this setup and suggest a potential reversal.


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