Gold Turns Bullish After Clearing Daily Sell-Side LiquidityThe purge of this liquidity indicates that institutional players may have engineered a move to grab orders before initiating a new upward leg. Following this move, price action shows signs of strong bullish intent, such as bullish engulfing candles, increased volume on up moves, or a break above short-term resistance.
This liquidity sweep not only invalidates bearish pressure but also creates a clean bullish imbalance, offering a potential entry zone for buyers. Traders should now watch for:
A break and retest of the key structure above the liquidity sweep.
Bullish order blocks forming on lower timeframes (e.g., H1 or H4).
Confluences like Fibonacci retracement levels, trendline support, or moving average bounces.
As long as price holds above the level of the purge and continues forming higher lows, gold is likely to trend upward in the near term. Potential targets include recent highs or fair value gaps left behind during the bearish move.
This setup favors buying pullbacks rather than chasing price, with invalidation below the recent sweep level.
