Gold (XAUUSD) remains in a strong long-term uptrend, consistently respecting ascending trendline support since early stages of the rally. The chart shows multiple successful retests of the trendline, with the most recent bounce occurring near the $3,120 level, aligning with prior horizontal support and trendline confluence.
This rejection from support suggests bullish continuation is likely, provided that price remains above $3,120. A bullish move from current levels targets the recent high and resistance zone around $3,420. This area has previously acted as a supply zone, so it is reasonable to expect sellers to step in again around that level.
Trade Plan:
This setup offers a favorable risk-to-reward ratio while trading in the direction of the prevailing uptrend. Break below $3,120 would invalidate the setup and open potential downside toward the next major support around $2,960.
This rejection from support suggests bullish continuation is likely, provided that price remains above $3,120. A bullish move from current levels targets the recent high and resistance zone around $3,420. This area has previously acted as a supply zone, so it is reasonable to expect sellers to step in again around that level.
Trade Plan:
- Entry: Current market price near $3,215–$3,220 (after confirmation of bounce)
- Take Profit (TP): $3,420
- Stop Loss (SL): Below $3,120 (ideally around $3,095 to allow buffer below trendline)
This setup offers a favorable risk-to-reward ratio while trading in the direction of the prevailing uptrend. Break below $3,120 would invalidate the setup and open potential downside toward the next major support around $2,960.
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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.