Bump and Run Pattern with Key Resistance and Pullback Zones!
Updated
XAUUSD Current Price: 2578.715
4H Chart
1 - Consolidation Support & Resistance Zone:
• After breaking out of the Consolidation Zone, Gold has reached the All-Time High (ATH) of 2586.013, marking the high of the Lead-In Phase in the Bump and Run pattern.
• Consolidation High Line: This line represents the price projection based on the height of the consolidation support and resistance zone. The price may move toward the target of 2594.126. In the Daily chart I published earlier, Gold is also within an ascending channel. Based on this, the price may rise to the upper trendline, which is close to 2600.
2 - Ultimate Level:
The price is currently slightly above the Ultimate Level at 2578.125. If the price holds above this level, it is likely to revisit the new resistance at the ATH. Should it break through, the next target would be based on the projection line, with the price likely heading toward 2594. Given the Overbought Zone, a pullback from this level is possible, but if the strong bullish momentum continues, Gold may break through the price target and Overbought Zone. However, once it reaches the Extreme Overbought Zone, we expect significant pullback pressure.
3 - Major Correction:
From the Extreme Overbought Zone, we anticipate the price will return to the Ultimate Level at 2578.125. While it may hold here temporarily, it is more likely to break below this level. In that case, the next target will be the Prime Reversal Zone at 2539.630, where the price may consolidate within the Consolidation Zone.
4 - Bump and Run Pattern:
Following the Consolidation Phase, the Bump and Run pattern suggests that the price will likely break through the Prime Reversal Zone and approach the Breakout Line. After breaking this line, a throwback to retest the Breakout Line is expected, marking the beginning of the Run Phase. From there, the price could move toward the Major Turning Point. At this level, the price may either consolidate or experience a partial rise. However, the ultimate target is the Low of the Lead-In Phase, with a projected price of 2471, according to the Bump and Run pattern.
• Additionally, if the price breaks the key psychological level at 2500, this would signal a bearish shift in the market.
Conclusion:
Gold is currently in a bullish trend, trading near important levels in the Overbought Zone. While a further rise toward 2617 is possible, a market correction is likely. Watch for a pullback to the Prime Reversal Zone at 2578 or the Breakout Line at 2543. A deeper retracement could target the Major Turning Point at 2500 or the Low of Lead at 2471. If the market holds above 2543, the bullish trend could resume with new highs.
Trade active
As anticipated, Precious Metal revisited the 2586.013Trade active
In our 3rd paragraph, we mentioned that the price was more likely to break below the Ultimate Level of 2578.125. Since the price has already broken this level, we are now in the Consolidation Zone. Following this, our next price target should be the Prime Reversal Zone.Trade closed: target reached
In our first Paragraph, as I predicted, the price moved toward the target of 2594.126. In the earlier Daily chart, I highlighted Gold’s position within an ascending channel. As expected, the price rose toward the upper trendline, near 2600.
Target Reached: 2594.125 🎯
Target Reached: 2600 🎯
Trade active
We were Close to the Prime Reversal Zone 2539, the price reached to 2544.Trade active
As we can see on the chart, the Prime Reversal Zone was highly respected, with the price bouncing back to 2596, returning to the high of the lead in phase, which we consider the bump phase. We expect the price to revisit the Prime Reversal Zone, However, if it break through 2617 our analysis will no longer be valid.
As far as Price remains between 2617 and 2470 our analysis will be valid.
I will give you update.
Trade active
As observed, the price is approaching the extreme overbought zone at 2617.18, with a recent high of 2615.25. We anticipate a pullback to 2600 in the near term.
Stay sharp, stay profitable!
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Trade closed: target reached
Target Reached: 2617.188 ✔
As we anticipated, further rise towards 2617.188 was possible, and the price successfully reached our target.
🚫 This analysis is no longer valid.
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