Support Level:
Price recently tested a clear support zone (marked in blue) around the 3,295 level.
This area has previously acted as a demand zone, where buying interest appears strong.
Downtrend and Reversal:
A strong downtrend is visible before price hits the support level.
There’s a descending trendline which has just been broken to the upside, indicating a potential trend reversal or correction.
Moving Averages:
The red line (50 EMA) and blue line (200 EMA) show a bearish crossover earlier, confirming the earlier downtrend.
Price is now testing the 50 EMA, and a move above it could signal bullish momentum.
Bullish Projection:
The chart projects a potential reversal with a bounce from the support zone.
Target is set around 3,349 — labeled “CONFIRM TARGET POINT” — which aligns with previous resistance and a Fibonacci retracement zone.
Risk/Reward:
Stop-loss is placed just below the support zone (~3,289.75).
Entry appears to be around 3,302–3,303, targeting a significant move higher (around 3,349), offering a good risk/reward ratio.
Conclusion:
The chart suggests a potential long (buy) trade setup if the price holds above the support and breaks convincingly above the 50 EMA. Confirmation of the bullish move would be strengthened by a clear candle close above 3,303 and continued buying momentum. However, traders should monitor macroeconomic news (e.g., USD data, Fed updates) that could affect XAU/USD volatility.
Price recently tested a clear support zone (marked in blue) around the 3,295 level.
This area has previously acted as a demand zone, where buying interest appears strong.
Downtrend and Reversal:
A strong downtrend is visible before price hits the support level.
There’s a descending trendline which has just been broken to the upside, indicating a potential trend reversal or correction.
Moving Averages:
The red line (50 EMA) and blue line (200 EMA) show a bearish crossover earlier, confirming the earlier downtrend.
Price is now testing the 50 EMA, and a move above it could signal bullish momentum.
Bullish Projection:
The chart projects a potential reversal with a bounce from the support zone.
Target is set around 3,349 — labeled “CONFIRM TARGET POINT” — which aligns with previous resistance and a Fibonacci retracement zone.
Risk/Reward:
Stop-loss is placed just below the support zone (~3,289.75).
Entry appears to be around 3,302–3,303, targeting a significant move higher (around 3,349), offering a good risk/reward ratio.
Conclusion:
The chart suggests a potential long (buy) trade setup if the price holds above the support and breaks convincingly above the 50 EMA. Confirmation of the bullish move would be strengthened by a clear candle close above 3,303 and continued buying momentum. However, traders should monitor macroeconomic news (e.g., USD data, Fed updates) that could affect XAU/USD volatility.
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Join My Official Channel Link
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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.