🔍 Chart Structure Overview
Downtrend Channel (Bearish Flag/Wedge):
The price has been moving within a well-defined descending channel.
Multiple touches on both the upper and lower trendlines confirm the structure.
Breakout Confirmation:
Price has now broken above the upper trendline of the descending channel, indicating a potential bullish breakout.
This is often a reversal signal when it comes after a strong downtrend.
Key Support Zone:
A horizontal support zone is marked where price reversed and pushed up strongly.
This suggests a potential accumulation zone and demand area.
Retest Expectation:
The red arrows suggest that price may retest the broken channel resistance (now turned support).
If it holds, it could confirm a bullish continuation.
📈 Projection & Target Levels
Immediate Target: Around $3,250–$3,275, just above the breakout zone.
Extended Target: Above $3,375, based on the arrow projection and previous swing highs.
🔄 Scenario Path (Based on Drawing):
Price has broken out of the channel (bullish signal).
A pullback/retest to the channel top or previous resistance is expected.
If the retest holds, we expect a strong bullish continuation.
✅ Bullish Confluences:
Break of descending structure
Reversal from strong demand zone
Momentum shown in bullish candles
Projection suggests a healthy risk-reward opportunity
⚠️ Risk Factors to Monitor:
False breakout: If the price returns into the channel, bullish bias weakens.
Major resistance at $3,250–$3,275 area.
Fundamental events (e.g. FOMC, CPI) that can cause volatility.
📌 Conclusion:
This chart suggests a bullish reversal setup on Gold, supported by a channel breakout and demand reaction. A successful retest of the breakout zone would confirm potential for upward momentum toward the $3,275–$3,375 levels.
Downtrend Channel (Bearish Flag/Wedge):
The price has been moving within a well-defined descending channel.
Multiple touches on both the upper and lower trendlines confirm the structure.
Breakout Confirmation:
Price has now broken above the upper trendline of the descending channel, indicating a potential bullish breakout.
This is often a reversal signal when it comes after a strong downtrend.
Key Support Zone:
A horizontal support zone is marked where price reversed and pushed up strongly.
This suggests a potential accumulation zone and demand area.
Retest Expectation:
The red arrows suggest that price may retest the broken channel resistance (now turned support).
If it holds, it could confirm a bullish continuation.
📈 Projection & Target Levels
Immediate Target: Around $3,250–$3,275, just above the breakout zone.
Extended Target: Above $3,375, based on the arrow projection and previous swing highs.
🔄 Scenario Path (Based on Drawing):
Price has broken out of the channel (bullish signal).
A pullback/retest to the channel top or previous resistance is expected.
If the retest holds, we expect a strong bullish continuation.
✅ Bullish Confluences:
Break of descending structure
Reversal from strong demand zone
Momentum shown in bullish candles
Projection suggests a healthy risk-reward opportunity
⚠️ Risk Factors to Monitor:
False breakout: If the price returns into the channel, bullish bias weakens.
Major resistance at $3,250–$3,275 area.
Fundamental events (e.g. FOMC, CPI) that can cause volatility.
📌 Conclusion:
This chart suggests a bullish reversal setup on Gold, supported by a channel breakout and demand reaction. A successful retest of the breakout zone would confirm potential for upward momentum toward the $3,275–$3,375 levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.