The gold market is currently trading within a long-term ascending bullish channel, respecting dynamic trend lines that act as both support and resistance. This market structure shows a clear pattern of higher highs and higher lows, indicating that the overall trend remains bullish.
Key Observations:
Market Structure & Trend Analysis:
- The price has been following a well-defined bullish trend while respecting key trendlines.
- An inner bearish channel has emerged, contributing to short-term pullbacks, but the overall trend remains intact as price continues bouncing off support levels.
- The all-time high (ATH) resistance area has acted as a strong supply zone, where sellers have stepped in multiple times.
Volume & Corrections:
- The chart highlights multiple volume-based corrections, where price pullbacks have occurred with increased selling pressure.
- These corrections align with dynamic support and resistance levels, reinforcing key pivot zones.
- After a significant drop into the key support/value area, buyers stepped in aggressively, leading to the latest bullish rebound.
EMA & Pivot Support Levels:
- The exponential moving average (EMA) trend support has played a crucial role in maintaining the bullish structure, acting as a dynamic area of interest.
- Pivot points are marked, showing where price has reacted at key levels, further validating the importance of these zones.
Quarters & Fibonacci Levels:
- The quarters theory percentages (25%, 50%, 75%, and 100%) are plotted, showing price reactions at these psychological levels.
- The 50% retracement level was a significant bounce area, aligning with previous demand and forming a potential higher low.
- If price sustains above this mid-level, the next targets would be the ATH resistance at 75% and potentially the 100% extension into the target zone above $3,000.
Potential Scenarios:
1. Bullish Continuation: If price holds above the key support zone and successfully reclaims the ATH resistance, we could see a breakout targeting new highs around the $3,000+ target zone.
2. Rejection & Consolidation: If price struggles at the ATH resistance, a pullback to retest the 50% retracement level or lower support zones is possible before another leg up.
3. Bearish Breakdown: If price loses its key support levels, a deeper correction could unfold, pushing price back into the lower range of the channel.
Final Outlook:
The market remains structurally bullish, with volume-based corrections providing healthy pullbacks. As long as price respects the key EMA support, Fibonacci levels, and quarters theory zones, the probability of reaching new highs remains strong. However, resistance around the ATH zone must be closely monitored for signs of either a breakout or another rejection.
What is your thoughts ? Let me know in the comments!
XAUUSD XAUUSD
Key Observations:
Market Structure & Trend Analysis:
- The price has been following a well-defined bullish trend while respecting key trendlines.
- An inner bearish channel has emerged, contributing to short-term pullbacks, but the overall trend remains intact as price continues bouncing off support levels.
- The all-time high (ATH) resistance area has acted as a strong supply zone, where sellers have stepped in multiple times.
Volume & Corrections:
- The chart highlights multiple volume-based corrections, where price pullbacks have occurred with increased selling pressure.
- These corrections align with dynamic support and resistance levels, reinforcing key pivot zones.
- After a significant drop into the key support/value area, buyers stepped in aggressively, leading to the latest bullish rebound.
EMA & Pivot Support Levels:
- The exponential moving average (EMA) trend support has played a crucial role in maintaining the bullish structure, acting as a dynamic area of interest.
- Pivot points are marked, showing where price has reacted at key levels, further validating the importance of these zones.
Quarters & Fibonacci Levels:
- The quarters theory percentages (25%, 50%, 75%, and 100%) are plotted, showing price reactions at these psychological levels.
- The 50% retracement level was a significant bounce area, aligning with previous demand and forming a potential higher low.
- If price sustains above this mid-level, the next targets would be the ATH resistance at 75% and potentially the 100% extension into the target zone above $3,000.
Potential Scenarios:
1. Bullish Continuation: If price holds above the key support zone and successfully reclaims the ATH resistance, we could see a breakout targeting new highs around the $3,000+ target zone.
2. Rejection & Consolidation: If price struggles at the ATH resistance, a pullback to retest the 50% retracement level or lower support zones is possible before another leg up.
3. Bearish Breakdown: If price loses its key support levels, a deeper correction could unfold, pushing price back into the lower range of the channel.
Final Outlook:
The market remains structurally bullish, with volume-based corrections providing healthy pullbacks. As long as price respects the key EMA support, Fibonacci levels, and quarters theory zones, the probability of reaching new highs remains strong. However, resistance around the ATH zone must be closely monitored for signs of either a breakout or another rejection.
What is your thoughts ? Let me know in the comments!
XAUUSD XAUUSD 
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.