Gold (XAUUSD) is approaching a key demand zone, which could offer a potential buying opportunity. Here’s a breakdown of my analysis and trade expectations:
1️⃣ Market Structure & Trend Analysis
• Price is currently in a short-term downtrend, creating lower highs and lower lows.
• However, a Monitor Buy Zone has been identified, where price previously found strong support and liquidity.
• A reaction from this level could trigger a bullish reversal.
2️⃣ Expected Price Movements
• Bullish Scenario: If price reaches the Monitor Buy Zone (3,067 - 3,047) and shows bullish confirmation (e.g., wicks, engulfing candles), we could see a rebound toward 3,095 - 3,100 as the first target.
• Bearish Scenario: If price breaks below the 3,047 support level with strong bearish momentum, it could invalidate the buy setup and push lower toward new demand levels.
3️⃣ Key Levels to Watch
• Resistance Levels:
• 3,095 - 3,100: Initial target zone for a bounce.
• 3,120: Potential extended target if momentum continues.
• Support Levels:
• 3,067: First reaction level in the Monitor Buy Zone.
• 3,047: Last level of defense before a deeper drop.
4️⃣ Trade Plan & Risk Management
• Entry: Looking for bullish confirmations at the Monitor Buy Zone before entering a long position.
• Stop Loss: Below 3,047, ensuring minimal risk if the trade setup fails.
• Take Profit Levels:
• First TP at 3,095 - 3,100 (safe target).
• Extended TP at 3,120 (if bullish momentum continues).
5️⃣ Confluences for a Long Setup
• Liquidity Grab Possibility: Price could sweep below previous lows before reversing.
• Historical Support: Price has bounced from this region before, adding strength to the buy zone.
• Fibonacci Levels: Possible alignment with key retracement zones for added confirmation.
Final Thoughts:
I’ll be closely watching price action at the Monitor Buy Zone before entering a trade. If price respects this area and bullish momentum builds, we could see a strong rebound.
What’s your bias on XAUUSD? Drop your thoughts in the comments!
1️⃣ Market Structure & Trend Analysis
• Price is currently in a short-term downtrend, creating lower highs and lower lows.
• However, a Monitor Buy Zone has been identified, where price previously found strong support and liquidity.
• A reaction from this level could trigger a bullish reversal.
2️⃣ Expected Price Movements
• Bullish Scenario: If price reaches the Monitor Buy Zone (3,067 - 3,047) and shows bullish confirmation (e.g., wicks, engulfing candles), we could see a rebound toward 3,095 - 3,100 as the first target.
• Bearish Scenario: If price breaks below the 3,047 support level with strong bearish momentum, it could invalidate the buy setup and push lower toward new demand levels.
3️⃣ Key Levels to Watch
• Resistance Levels:
• 3,095 - 3,100: Initial target zone for a bounce.
• 3,120: Potential extended target if momentum continues.
• Support Levels:
• 3,067: First reaction level in the Monitor Buy Zone.
• 3,047: Last level of defense before a deeper drop.
4️⃣ Trade Plan & Risk Management
• Entry: Looking for bullish confirmations at the Monitor Buy Zone before entering a long position.
• Stop Loss: Below 3,047, ensuring minimal risk if the trade setup fails.
• Take Profit Levels:
• First TP at 3,095 - 3,100 (safe target).
• Extended TP at 3,120 (if bullish momentum continues).
5️⃣ Confluences for a Long Setup
• Liquidity Grab Possibility: Price could sweep below previous lows before reversing.
• Historical Support: Price has bounced from this region before, adding strength to the buy zone.
• Fibonacci Levels: Possible alignment with key retracement zones for added confirmation.
Final Thoughts:
I’ll be closely watching price action at the Monitor Buy Zone before entering a trade. If price respects this area and bullish momentum builds, we could see a strong rebound.
What’s your bias on XAUUSD? Drop your thoughts in the comments!
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.