Gold (XAU/USD) remains a favorite among traders due to its characteristic volatility and safe-haven appeal. Currently, the chart indicates a potential breakout scenario, as the price approaches a critical resistance level following a steady ascent from support zones.
Chart Breakdown
- Support Zone: The primary support zone lies between $2,590 and $2,620, an area where buyers have consistently stepped in to defend prices.
- Resistance Levels: The immediate resistance is at $2,640, where price is currently testing the breakout level. If cleared, the next significant resistance lies around $2,670, with a potential rally toward the $2,700 zone, a level that aligns with recent highs.
Potential Scenarios
- Bullish Case: A breakout above $2,640 could open the door to further upside, targeting $2,670 as the first milestone and $2,700 as a secondary target. The ascending trendline further supports bullish momentum, providing dynamic support.
- Bearish Case: A failure to breach $2,640, combined with selling pressure, could see prices revisiting the $2,620 support zone. A breakdown below this level could send gold back toward $2,590 or even lower, around $2,550, where a stronger demand zone is evident.
Trading Plan
Bullish Setup:
- Entry: Above $2,640 with confirmation of a breakout.
- Target 1: $2,670
- Target 2: $2,700
- Stop-Loss: Below $2,620
Bearish Setup:
- Entry: Below $2,620, especially if the ascending trendline breaks.
- Target 1: $2,590
- Target 2: $2,550
- Stop-Loss: Above $2,640
What’s your outlook on Gold? Will it break higher, or is a retracement imminent? Let’s discuss in the comments below! 📈📉
⚠️ Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Always perform your own analysis before trading.
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Trade closed: target reached
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.