Gold (XAU/USD), 4H chart setup:
🔍 Technical Analysis:
1. Downtrend Channel (Past Price Action):
The chart shows a clearly defined descending channel (two white trendlines).
Price respected the channel structure until a bullish breakout occurred.
2. Breakout Confirmation:
Price broke above the upper boundary of the descending channel.
This breakout suggests a potential bullish reversal or at least a retracement move upward.
3. Demand & Supply Zones:
A demand zone is visible below the breakout point, acting as a support base.
The price is currently interacting with a minor supply zone (resistance) where sellers may emerge temporarily.
A projected pullback (dotted yellow line) is shown before price continues upward — indicating a plan for a retest and continuation.
📈 Trade Setup:
Long Trade Idea is clearly illustrated:
Entry: Around current levels after a minor pullback or confirmation breakout.
Stop-Loss: Below the demand zone (likely around 3,150–3,180).
Take-Profit: Very ambitious — TP set near 3,406–3,408, well above recent highs.
Risk-Reward Ratio: Appears to be 1:4 or higher, which is excellent.
📌 Pattern in Play:
The current setup follows a “Break – Retest – Continuation” logic.
The market broke out of the bearish structure, now preparing for a possible higher high formation.
Classic reversal structure supported by bullish engulfing candles and volume pickup.
🧠 Conclusion:
Pattern: Bullish breakout & retest (early stages of trend reversal).
Bias: Bullish as long as the price stays above the demand zone.
Trade Plan: Wait for confirmation from the pullback or enter after a solid bullish candle breaks above the supply zone.
🔍 Technical Analysis:
1. Downtrend Channel (Past Price Action):
The chart shows a clearly defined descending channel (two white trendlines).
Price respected the channel structure until a bullish breakout occurred.
2. Breakout Confirmation:
Price broke above the upper boundary of the descending channel.
This breakout suggests a potential bullish reversal or at least a retracement move upward.
3. Demand & Supply Zones:
A demand zone is visible below the breakout point, acting as a support base.
The price is currently interacting with a minor supply zone (resistance) where sellers may emerge temporarily.
A projected pullback (dotted yellow line) is shown before price continues upward — indicating a plan for a retest and continuation.
📈 Trade Setup:
Long Trade Idea is clearly illustrated:
Entry: Around current levels after a minor pullback or confirmation breakout.
Stop-Loss: Below the demand zone (likely around 3,150–3,180).
Take-Profit: Very ambitious — TP set near 3,406–3,408, well above recent highs.
Risk-Reward Ratio: Appears to be 1:4 or higher, which is excellent.
📌 Pattern in Play:
The current setup follows a “Break – Retest – Continuation” logic.
The market broke out of the bearish structure, now preparing for a possible higher high formation.
Classic reversal structure supported by bullish engulfing candles and volume pickup.
🧠 Conclusion:
Pattern: Bullish breakout & retest (early stages of trend reversal).
Bias: Bullish as long as the price stays above the demand zone.
Trade Plan: Wait for confirmation from the pullback or enter after a solid bullish candle breaks above the supply zone.
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.