Description:
Looking at the 15-minute chart for Gold (XAU/USD), we can observe that the price is approaching a key support level around the $2,580 zone after a sharp drop. A strong bounce off this level could provide a potential long opportunity, especially with rising volume indicating renewed interest from buyers.
Key Observations:
1. Support Zone: The highlighted red area around $2,580 has acted as a strong demand zone in the past. Buyers might step in again if the price approaches this level, potentially leading to a reversal.
2. Volume Spike: Notice the significant increase in volume during the recent sell-off, followed by lower volume on consolidation. This suggests that sellers may be exhausted, and buyers could regain control.
3. MACD and RSI Bullish Divergence: The MACD is showing signs of upward momentum, and the RSI is gradually rising from oversold levels, signalling potential bullish divergence. This could further confirm the potential for a reversal.
Trade Idea:
• Buy Entry: Around $2,580-$2,590 if bullish confirmation is seen.
• Stop Loss: Below the $2,575 level to protect against further downside.
• Take Profit: Initial target at $2,600, with potential to move higher if bullish momentum continues.
Watchlist: Keep an eye on the volume and MACD crossover for confirmation of a bullish reversal. A break below $2,575 could invalidate this idea.
Let me know your thoughts 💭
Looking at the 15-minute chart for Gold (XAU/USD), we can observe that the price is approaching a key support level around the $2,580 zone after a sharp drop. A strong bounce off this level could provide a potential long opportunity, especially with rising volume indicating renewed interest from buyers.
Key Observations:
1. Support Zone: The highlighted red area around $2,580 has acted as a strong demand zone in the past. Buyers might step in again if the price approaches this level, potentially leading to a reversal.
2. Volume Spike: Notice the significant increase in volume during the recent sell-off, followed by lower volume on consolidation. This suggests that sellers may be exhausted, and buyers could regain control.
3. MACD and RSI Bullish Divergence: The MACD is showing signs of upward momentum, and the RSI is gradually rising from oversold levels, signalling potential bullish divergence. This could further confirm the potential for a reversal.
Trade Idea:
• Buy Entry: Around $2,580-$2,590 if bullish confirmation is seen.
• Stop Loss: Below the $2,575 level to protect against further downside.
• Take Profit: Initial target at $2,600, with potential to move higher if bullish momentum continues.
Watchlist: Keep an eye on the volume and MACD crossover for confirmation of a bullish reversal. A break below $2,575 could invalidate this idea.
Let me know your thoughts 💭
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.