Gold Spot (XAU/USD) Technical Analysis
1. Key Levels and Zones:
Resistance Zone (Gray Box):
Gold is testing the resistance area near $2,650 after a prior fakeout breakout within this region.
Support Levels:
$2,649.85: Immediate support that could hold short-term price action.
$2,637.81 - $2,636.77 (Yellow Zone): A key level of interest where buyers may step in.
Demand Zone: Around $2,621 (marked in teal), a strong buying interest area from previous price reactions.
2. Breakout or Reversal Scenarios:
Bullish Case:
A breakout above $2,650 will invalidate bearish pressure. This move could push prices higher toward $2,670-$2,700, signaling continuation of the uptrend.
Bearish Case:
A reversal below $2,650 suggests rejection from the resistance zone. If this happens:
Price may revisit $2,637.81-$2,636.77 for a retest.
Further downside could lead to a test of the $2,621 demand zone.
3. Market Structure:
BOS (Break of Structure):
Multiple BOS points observed in both directions indicate a choppy market. The most recent BOS favors bullish momentum but remains vulnerable near resistance.
Fakeout Breakout:
The fakeout above $2,650 previously trapped buyers, leading to sharp selloffs.
4. Trade Ideas:
For Bulls:
Wait for a clean breakout and retest above $2,650, confirming continuation. Target $2,670-$2,700.
For Bears:
Look for rejection signs below $2,650 or on a retest of $2,637.81-$2,636.77. Target downside towards $2,621.
5. Key Observations:
Volume or momentum confirmation is critical to avoid getting caught in another fakeout.
This setup offers a balanced risk-reward for both bullish and bearish trades depending on breakout or reversal signals.
1. Key Levels and Zones:
Resistance Zone (Gray Box):
Gold is testing the resistance area near $2,650 after a prior fakeout breakout within this region.
Support Levels:
$2,649.85: Immediate support that could hold short-term price action.
$2,637.81 - $2,636.77 (Yellow Zone): A key level of interest where buyers may step in.
Demand Zone: Around $2,621 (marked in teal), a strong buying interest area from previous price reactions.
2. Breakout or Reversal Scenarios:
Bullish Case:
A breakout above $2,650 will invalidate bearish pressure. This move could push prices higher toward $2,670-$2,700, signaling continuation of the uptrend.
Bearish Case:
A reversal below $2,650 suggests rejection from the resistance zone. If this happens:
Price may revisit $2,637.81-$2,636.77 for a retest.
Further downside could lead to a test of the $2,621 demand zone.
3. Market Structure:
BOS (Break of Structure):
Multiple BOS points observed in both directions indicate a choppy market. The most recent BOS favors bullish momentum but remains vulnerable near resistance.
Fakeout Breakout:
The fakeout above $2,650 previously trapped buyers, leading to sharp selloffs.
4. Trade Ideas:
For Bulls:
Wait for a clean breakout and retest above $2,650, confirming continuation. Target $2,670-$2,700.
For Bears:
Look for rejection signs below $2,650 or on a retest of $2,637.81-$2,636.77. Target downside towards $2,621.
5. Key Observations:
Volume or momentum confirmation is critical to avoid getting caught in another fakeout.
This setup offers a balanced risk-reward for both bullish and bearish trades depending on breakout or reversal signals.
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.