🔷 1. Descending Channel – End of Bearish Phase
The chart initially shows Gold trading inside a well-defined descending channel, where price was consistently respecting both upper and lower trendlines. This movement reflected short-term bearish pressure, likely driven by fundamental uncertainty and lower time frame liquidity grabs.
However, the price broke above the channel with a strong bullish candle, which is a clear sign of momentum shift. Breakouts like these usually signify the end of a corrective phase and the beginning of a trend reversal or impulsive leg.
🔷 2. Minor Break of Structure (BOS) – First Confirmation
Following the channel breakout, price broke through a minor structure zone around 3,345–3,350, confirming a short-term change in market direction. This zone, previously acting as resistance, is now functioning as support (noted as “Minor SR - Interchange” on the chart).
This BOS is important because it represents the first break of a lower high in the previous downtrend, which is an early sign that buyers are stepping in with strength.
🔷 3. Retest and Clean Reaction – Support Validated
After breaking structure, the market retraced back into the broken zone, validating it as new support. This is a classic market behavior where price retests previous resistance to gather liquidity before moving higher — a key concept in Smart Money Concepts (SMC).
The bullish rejection from this zone further confirms the validity of the breakout and indicates that institutional buyers may be active in this region.
🔷 4. Current Price Action – Building Momentum
Price is now hovering near 3,355, building bullish structure with a series of higher highs and higher lows. This setup aligns with a continuation move toward the next liquidity target or resistance zone, which is:
✅ Reversal Zone: 3,375–3,380
This zone is marked as the next high-probability area where price might:
Face short-term resistance
Grab liquidity above previous highs
Possibly react with a pullback
The highlighted reversal zone (target: 3,378.23) is crucial because:
It aligns with previous supply
It could act as a decision point for larger time frame traders
It’s where a Major Break of Structure might occur if price breaks and holds above it
🔷 5. Projection & Scenario Planning
Here’s how the next move could play out:
Bullish Scenario: If price maintains support above the 3,350 zone, a rally toward 3,378 is expected. A strong close above this level would shift the larger structure bullish, confirming a major trend reversal.
Bearish Scenario (Short-Term): If price fails to break 3,378, we could see a pullback into the 3,345–3,350 area again. However, as long as this support holds, the bullish bias remains intact.
🔐 Key Technical Concepts Used:
Channel Breakout
Minor BOS & SR Flip
Liquidity Sweep
Reversal Zone (Supply Area)
Trend Structure Shift
📌 Conclusion:
Gold has broken out of its bearish channel and confirmed a short-term bullish structure. The recent breakout and retest give buyers a strong foundation to push toward the 3,378 zone. This is the key reversal area, and the reaction from here will define whether Gold continues to rally or faces a temporary pullback. For now, bulls are in control, and the market structure supports a continuation move.
The chart initially shows Gold trading inside a well-defined descending channel, where price was consistently respecting both upper and lower trendlines. This movement reflected short-term bearish pressure, likely driven by fundamental uncertainty and lower time frame liquidity grabs.
However, the price broke above the channel with a strong bullish candle, which is a clear sign of momentum shift. Breakouts like these usually signify the end of a corrective phase and the beginning of a trend reversal or impulsive leg.
🔷 2. Minor Break of Structure (BOS) – First Confirmation
Following the channel breakout, price broke through a minor structure zone around 3,345–3,350, confirming a short-term change in market direction. This zone, previously acting as resistance, is now functioning as support (noted as “Minor SR - Interchange” on the chart).
This BOS is important because it represents the first break of a lower high in the previous downtrend, which is an early sign that buyers are stepping in with strength.
🔷 3. Retest and Clean Reaction – Support Validated
After breaking structure, the market retraced back into the broken zone, validating it as new support. This is a classic market behavior where price retests previous resistance to gather liquidity before moving higher — a key concept in Smart Money Concepts (SMC).
The bullish rejection from this zone further confirms the validity of the breakout and indicates that institutional buyers may be active in this region.
🔷 4. Current Price Action – Building Momentum
Price is now hovering near 3,355, building bullish structure with a series of higher highs and higher lows. This setup aligns with a continuation move toward the next liquidity target or resistance zone, which is:
✅ Reversal Zone: 3,375–3,380
This zone is marked as the next high-probability area where price might:
Face short-term resistance
Grab liquidity above previous highs
Possibly react with a pullback
The highlighted reversal zone (target: 3,378.23) is crucial because:
It aligns with previous supply
It could act as a decision point for larger time frame traders
It’s where a Major Break of Structure might occur if price breaks and holds above it
🔷 5. Projection & Scenario Planning
Here’s how the next move could play out:
Bullish Scenario: If price maintains support above the 3,350 zone, a rally toward 3,378 is expected. A strong close above this level would shift the larger structure bullish, confirming a major trend reversal.
Bearish Scenario (Short-Term): If price fails to break 3,378, we could see a pullback into the 3,345–3,350 area again. However, as long as this support holds, the bullish bias remains intact.
🔐 Key Technical Concepts Used:
Channel Breakout
Minor BOS & SR Flip
Liquidity Sweep
Reversal Zone (Supply Area)
Trend Structure Shift
📌 Conclusion:
Gold has broken out of its bearish channel and confirmed a short-term bullish structure. The recent breakout and retest give buyers a strong foundation to push toward the 3,378 zone. This is the key reversal area, and the reaction from here will define whether Gold continues to rally or faces a temporary pullback. For now, bulls are in control, and the market structure supports a continuation move.
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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.
For Daily Trade Setups and Forecast: 📈 t.me/xauusdoptimizer
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Premium Signals Fr33: 💯 t.me/xauusdoptimizer
🥰🥳🤩
Related publications
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.