Gold Price Set to Explode! Here’s What You Need to Watch Today!
Updated
Hey Traders, welcome back to my channel! 🚀
Today, we're diving deep into the latest XAUUSD analysis, and trust me, you don't want to miss this one. With gold prices poised for a significant move, understanding these key levels could make all the difference in your trading strategy.
Let's get started with the 1-hour chart (shown below). 📊
Chart 1: XAUUSD 1-Hour Time Frame Analysis (July 21, 2024)
Key Observations:
Daily Bull Flag Formation:
The chart highlights a daily bull flag pattern, which indicates a continuation pattern following a strong uptrend. On the daily TF sometimes this can take a bit longer to see due to how big this flag is on the (LTF)
The price has been consolidating within this flag formation.
Reversal Structure (Lower High - LH):
There is a reversal structure where the price made a lower high (LH), suggesting a potential bearish reversal in the short term.
Structure LTF (Lower Time Frame):
The price structure on the lower time frame indicates an area where price could pull back and reject off of this area indicating the continuation of the Overall move.
The second way this could play off of this area is we could get a clear impulsive move above this structure and then a rejection looking for higher moves in the Shorter Time Frame.
15-Minute Time Frame:
The 15-minute time frame shows a detailed view of the consolidation and break down from the flag formation. where you could see how close we are to the LQZ shown on the 1HR
1HR Liquidity Zone (LQZ):
Identified at 2,390.966, this zone may act as a significant support area and also our first Take Profit we gave last week.
4HR Liquidity Zone:
Marked at 2,349.179, another major support area that aligns with the daily LQZ. If price end up breaking the 1HR LQZ impulsively then we could look for this area as Take Profit and then once we get down to this area we could potentially see a pullback.
Daily LQZ:
The daily liquidity zone is at 2,286.809, a crucial support level for the longer-term perspective.
Potential Scenarios:
Scenario 1: Bullish Continuation
The price could bounce off the 1HR LQZ and continue the pullback on shorter time frame to the structure indicated as Lower Time Frame Structure. indicated by the Yellow path.
Scenario 2: Bearish Continuation
The price may break below the 1HR LQZ and head towards the 4HR and daily LQZs. indicated by the Green path. In this situation we would need to see a clear break below the 1HR LQZ then start to form some type of bearish pattern to show the continuation that could come.
Scenario 3: Reversal to Upside
After testing the support levels, the price could reverse and start a new uptrend, indicated by the orange path. We would need to see a clear break above the structure indicated by the box. This way we could see that on the Shorter Time frame of things we could get a deeper pull back.
Recommendations:
Watch for Reactions at Support Levels:
Monitor the price action around the 1HR, 4HR, and daily LQZs for potential entry points.
Set Alerts:
Set alerts for breakouts above the recent highs and breakdowns below the key support levels.
Manage Risk:
Ensure proper risk management by setting stop-losses below support levels and taking profits at resistance levels.
Today, we're diving deep into the latest XAUUSD analysis, and trust me, you don't want to miss this one. With gold prices poised for a significant move, understanding these key levels could make all the difference in your trading strategy.
Let's get started with the 1-hour chart (shown below). 📊
Chart 1: XAUUSD 1-Hour Time Frame Analysis (July 21, 2024)
Key Observations:
Daily Bull Flag Formation:
The chart highlights a daily bull flag pattern, which indicates a continuation pattern following a strong uptrend. On the daily TF sometimes this can take a bit longer to see due to how big this flag is on the (LTF)
The price has been consolidating within this flag formation.
Reversal Structure (Lower High - LH):
There is a reversal structure where the price made a lower high (LH), suggesting a potential bearish reversal in the short term.
Structure LTF (Lower Time Frame):
The price structure on the lower time frame indicates an area where price could pull back and reject off of this area indicating the continuation of the Overall move.
The second way this could play off of this area is we could get a clear impulsive move above this structure and then a rejection looking for higher moves in the Shorter Time Frame.
15-Minute Time Frame:
The 15-minute time frame shows a detailed view of the consolidation and break down from the flag formation. where you could see how close we are to the LQZ shown on the 1HR
1HR Liquidity Zone (LQZ):
Identified at 2,390.966, this zone may act as a significant support area and also our first Take Profit we gave last week.
4HR Liquidity Zone:
Marked at 2,349.179, another major support area that aligns with the daily LQZ. If price end up breaking the 1HR LQZ impulsively then we could look for this area as Take Profit and then once we get down to this area we could potentially see a pullback.
Daily LQZ:
The daily liquidity zone is at 2,286.809, a crucial support level for the longer-term perspective.
Potential Scenarios:
Scenario 1: Bullish Continuation
The price could bounce off the 1HR LQZ and continue the pullback on shorter time frame to the structure indicated as Lower Time Frame Structure. indicated by the Yellow path.
Scenario 2: Bearish Continuation
The price may break below the 1HR LQZ and head towards the 4HR and daily LQZs. indicated by the Green path. In this situation we would need to see a clear break below the 1HR LQZ then start to form some type of bearish pattern to show the continuation that could come.
Scenario 3: Reversal to Upside
After testing the support levels, the price could reverse and start a new uptrend, indicated by the orange path. We would need to see a clear break above the structure indicated by the box. This way we could see that on the Shorter Time frame of things we could get a deeper pull back.
Recommendations:
Watch for Reactions at Support Levels:
Monitor the price action around the 1HR, 4HR, and daily LQZs for potential entry points.
Set Alerts:
Set alerts for breakouts above the recent highs and breakdowns below the key support levels.
Manage Risk:
Ensure proper risk management by setting stop-losses below support levels and taking profits at resistance levels.
Trade closed: target reached
1HR Liquidity Zone (LQZ):Identified at 2,390.966, this zone may act as a significant support area and also our first Take Profit we gave last week has been reached.
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Help you better understand your personal risk tolerance
Guide you through emotionally charged decisions
Improve your overall trading confidence and performance
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