GOLD Analysis : SR Interchange , Reversal Zone + High Break

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🧠 Market Context & Structural Overview:
Gold has been trading within a clearly defined bullish structure after forming a rounded base pattern in early July, indicating accumulation by smart money. The market recently broke through a key horizontal resistance (previous swing high), marking a potential bullish continuation phase. However, we are now witnessing a pullback — a healthy corrective phase — that is currently testing multiple high-probability confluences.

🧱 Key Technical Zones Explained:
🔹 1. SR Interchange Zone – High Probability Reversal Area:
This area (roughly between $3,360 and $3,380) acted as previous resistance (supply) and has now flipped into support.

This is a textbook Support-Resistance Interchange (SR Flip) — a concept where prior resistance becomes new support.

Traders often look for entries here, especially when it aligns with other technical factors.

🔹 2. Curve Line Support – Dynamic Buyer Strength Indicator:
A curved trendline, often referred to as a parabolic support, has been respecting price structure for over two weeks.

Price is now sitting exactly on this support, signaling potential for another impulsive bullish leg if momentum builds.

🔹 3. Supply Zone Completed – Correction Phase Active:

The supply zone above (approx. $3,420–$3,440) has already been tapped and respected by the market.

This “completed” supply may now act as resistance unless broken with strong volume — we now watch how price reacts at the current pullback zone.

📊 What the Candles Are Telling Us:
The latest candles show some hesitation from sellers — wick rejections and smaller body candles hint at buyer interest at this level. However, confirmation is crucial. We want to see a bullish reversal pattern such as:

Bullish engulfing

Morning star

Pin bar (hammer)

Break and retest of minor resistance inside the SR zone

🔮 Scenarios to Watch:
✅ Scenario 1 – Bullish Continuation (Ideal Setup):
If a bullish reversal forms at this support zone:

Expect a potential rally back to the $3,420–$3,440 resistance area.

If this zone breaks with high volume, price could target the major supply zone near $3,465+, where we’ll need “Needed Volume” for a decisive break.

⚠️ Scenario 2 – Bearish Breakdown (Alternative View):
If the curve support and SR zone fail to hold:

Expect a drop towards $3,345 – $3,320 — where next structural support lies.

This would suggest a deeper retracement or range formation before bulls can regroup.

🧩 Strategy & Psychology:
“We want bullish pattern here.”

You’ve highlighted the importance of not entering impulsively. This is about trading with confirmation, not prediction. Waiting for a valid bullish pattern reduces risk and increases probability.

This is where smart traders win — waiting patiently for confirmation at a zone of confluence.

🧠 Learning Mindset – Why This Zone Matters:
Combines horizontal support, curved trendline, and broken structure retest.

This zone is the battleground between bulls and bears — whoever wins here will likely control short-term momentum.

Newer traders can study this as a classic example of multi-confluence trading, which combines price action, market structure, and dynamic trendlines.

Disclaimer

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