Gold (XAUUSD) Respecting Parallel Channel Support

Technical Breakdown

Gold has been trending inside a well-defined parallel ascending channel, respecting both the support and resistance levels. Currently, price is testing the lower boundary of the channel, which has acted as a strong support multiple times in the past.

Key Observations:

✔️ Support Zone: Price is bouncing off the channel's lower boundary, indicating a potential bullish reversal.
✔️ Confluence Factors: This area also aligns with a previous structure support level, making it a strong buy zone.
✔️ Risk-Reward Ratio: The trade setup offers an excellent risk-to-reward ratio, with a well-placed stop loss to minimize risk.

📊 Trade Setup:
🟢 Entry: Around $2,950 (Confirmed support bounce)
🎯 Target 1: $3,000 (Mid-channel resistance)
🎯 Target 2: $3,050+ (Upper channel resistance)
🛑 Stop Loss: Below $2,900 (Invalidation level)

💡 Trading Tip: Always wait for confirmation like bullish candlestick patterns (pin bars, engulfing candles) before entering. Managing risk with proper SL placement is crucial.

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HAAADY

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HAAADY

My FREE Telegram Channel:
t.me/EaglePipsPro1

Also on: