XAUUSD: Bullish Momentum Meets Resistance; Key TP at 2495.88
Descending Channel:
The price action was moving within a well-defined descending channel, indicating a short-term bearish trend.
The upper and lower boundaries of the channel have been respected multiple times, reinforcing the pattern's validity.
4H LQZ (Liquidity Zone) at 2,501.592:
The price reached the 4-hour Liquidity Zone around 2,501.592 and failed to break above it, indicating strong resistance at this level.
After touching this resistance, the price started to decline, suggesting that sellers are stepping in at this level.
Daily LQZ Support at 2,470.753:
The price is currently moving towards the Daily Liquidity Zone support at 2,470.753, which aligns with the lower boundary of the descending channel.
This level will be critical to watch, as a break below could lead to further downside.
Take Profit Consideration at 2,495.88
Previous 5-Minute Chart Analysis:
Based on your previous analysis, taking profits around 2,495.88 was recommended as it was the bottom of the ascending channel on the 5-minute chart.
This was a strategic level for profit-taking, given that the price has now moved below this level.
Post-Analysis:
After the price failed to sustain above the 4H LQZ at 2,501.592, it started to decline, confirming the decision to take profits at 2,495.88.
The price has now moved lower, validating the take-profit strategy and highlighting the importance of recognizing key levels in multiple time frames.
Immediate Outlook:
Short-Term Bearish Momentum:
Given the rejection at the 4H LQZ and the subsequent decline, the short-term outlook remains bearish.
The next key level to watch is the Daily LQZ at 2,470.753. If this level holds, it might provide a bounce opportunity; however, a break below could lead to further selling pressure.
Price Targets:
Downside: The immediate target would be the Daily LQZ at 2,470.753, which aligns with the lower boundary of the descending channel.
Upside: If the price manages to break above the 4H LQZ at 2,501.592, it could challenge the upper boundary of the descending channel.
Conclusion:
Taking profits at 2,495.88 was a prudent decision, given the subsequent price action. The chart shows that the bearish trend is intact, with key support levels to watch on the downside. It’s essential to monitor the price around 2,470.753 for potential reactions, as this will determine the next significant move in the XAU/USD pair.
The price action was moving within a well-defined descending channel, indicating a short-term bearish trend.
The upper and lower boundaries of the channel have been respected multiple times, reinforcing the pattern's validity.
4H LQZ (Liquidity Zone) at 2,501.592:
The price reached the 4-hour Liquidity Zone around 2,501.592 and failed to break above it, indicating strong resistance at this level.
After touching this resistance, the price started to decline, suggesting that sellers are stepping in at this level.
Daily LQZ Support at 2,470.753:
The price is currently moving towards the Daily Liquidity Zone support at 2,470.753, which aligns with the lower boundary of the descending channel.
This level will be critical to watch, as a break below could lead to further downside.
Take Profit Consideration at 2,495.88
Previous 5-Minute Chart Analysis:
Based on your previous analysis, taking profits around 2,495.88 was recommended as it was the bottom of the ascending channel on the 5-minute chart.
This was a strategic level for profit-taking, given that the price has now moved below this level.
Post-Analysis:
After the price failed to sustain above the 4H LQZ at 2,501.592, it started to decline, confirming the decision to take profits at 2,495.88.
The price has now moved lower, validating the take-profit strategy and highlighting the importance of recognizing key levels in multiple time frames.
Immediate Outlook:
Short-Term Bearish Momentum:
Given the rejection at the 4H LQZ and the subsequent decline, the short-term outlook remains bearish.
The next key level to watch is the Daily LQZ at 2,470.753. If this level holds, it might provide a bounce opportunity; however, a break below could lead to further selling pressure.
Price Targets:
Downside: The immediate target would be the Daily LQZ at 2,470.753, which aligns with the lower boundary of the descending channel.
Upside: If the price manages to break above the 4H LQZ at 2,501.592, it could challenge the upper boundary of the descending channel.
Conclusion:
Taking profits at 2,495.88 was a prudent decision, given the subsequent price action. The chart shows that the bearish trend is intact, with key support levels to watch on the downside. It’s essential to monitor the price around 2,470.753 for potential reactions, as this will determine the next significant move in the XAU/USD pair.
Related publications
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.