Gold Shows Potential Breakout at $3,390Gold Spot (XAUUSD)FXOPEN:XAUUSDforexinworldGold (XAU/USD) has been exhibiting mixed price action over the past few weeks. On the 4-hour chart, we notice a critical resistance trendline forming a descending pattern that has contained price movement for some time. The current price stands at $3,390.26, indicating a potential breakout scenario. Key Levels to Watch Resistance: $3,400 – A level that has repeatedly capped upward movements. Support: $3,325 – The lower boundary of recent price consolidation. Immediate Buy Level: $3,390.54 Immediate Sell Level: $3,390.32 The price is currently testing the descending trendline, suggesting a possible upward momentum if bulls sustain above this level. Traders should be cautious of a false breakout, as consolidation is still evident around $3,375 – $3,400. RSI Analysis The Relative Strength Index (RSI) 14-period shows the momentum hovering near the 60-65 zone, indicating moderately strong buying pressure but not yet overbought. Previous RSI peaks near 70 triggered minor pullbacks, highlighting the importance of this indicator for spotting reversals. ZigZag Indicator Insight The ZigZag 5 10 indicator highlights the swing highs and lows, helping traders visualize the trend reversal points. The recent formation suggests a potential shift toward an upward trend if the current breakout holds above the resistance. Trading Strategy 1. Bullish Scenario: Entry above $3,400 with a target near $3,450. Stop loss around $3,375 to manage risk. 2. Bearish Scenario: If the breakout fails and price dips below $3,375, short positions could target $3,325. Confirm with RSI moving below 50 for stronger conviction. Conclusion XAU/USD is showing signs of a potential bullish breakout after a prolonged period of consolidation. Traders should monitor the $3,400 resistance level closely and watch RSI behavior for momentum confirmation. With careful risk management, this could be a profitable swing trade opportunity.