BULLISH MOVE AHEAD? OR POTENTIAL BEARISH SETUP?
Updated
Greetings Traders,
Next Week's Technical Analysis for Gold Direction:
High Time Frame (HTF) Analysis:
Weekly and Daily Charts: A clear direction has been identified by observing the weekly and daily charts.
Chart Pattern:
Both charts show a Head and Shoulders (HNS) chart pattern that has completed and broken out of a dynamic strong support level.
Forecast for Next Monday:
Market Price Direction: The gold price is expected to continue its ascending movement to retest or in Smart Money Concepts (SMC) terms, to offer a discount to the levels between 2404 and 2423.85
Significant Zone:
This large Quasimodo (QMC) zone spans approximately 200 pips.
Trading Strategy:
Selling Opportunity: Plan to sell gold once the price reaches the identified zone and hold until the OHLC of the candle closes near the weekly support levels of 2355-2350.
Profit Target:
This setup presents an opportunity to aim for a total of up to 500 pips by next week. Insyallah.
Next Week's Technical Analysis for Gold Direction:
High Time Frame (HTF) Analysis:
Weekly and Daily Charts: A clear direction has been identified by observing the weekly and daily charts.
Chart Pattern:
Both charts show a Head and Shoulders (HNS) chart pattern that has completed and broken out of a dynamic strong support level.
Forecast for Next Monday:
Market Price Direction: The gold price is expected to continue its ascending movement to retest or in Smart Money Concepts (SMC) terms, to offer a discount to the levels between 2404 and 2423.85
Significant Zone:
This large Quasimodo (QMC) zone spans approximately 200 pips.
Trading Strategy:
Selling Opportunity: Plan to sell gold once the price reaches the identified zone and hold until the OHLC of the candle closes near the weekly support levels of 2355-2350.
Profit Target:
This setup presents an opportunity to aim for a total of up to 500 pips by next week. Insyallah.
Trade active
This morning, as the Asian session market opened, we observed significant activity in the gold market. The gold candlestick exhibited a sharp spike, moving upwards by almost 160 pips. This movement pushed the price into the zone I had previously identified at the 2303.25 level.On examining the H4 timeframe, it is evident that a double top pattern has formed. The double top is a bearish reversal pattern that typically signals a potential decline in price after the second peak is reached. This pattern often indicates that the upward momentum is weakening, and the market might be preparing for a downward trend.
In summary, the opening of the Asian session saw a significant upward movement in gold prices, leading to the formation of a double top pattern on the H4 timeframe, suggesting a possible reversal in the market.
Trade active
Following my technical analysis on XAUUSD, the gold price exhibited a pullback, ascending to the key resistance level I had previously identified at 2402. This level acted as a significant barrier, causing the price to reverse direction. As expected, the gold price then entered a bearish phase, declining by approximately 300 pips. This substantial drop confirmed the bearish trend identified in the analysis. Given the current market structure and moving average crossovers, we could potentially witness another bullish reversal in gold prices. Traders should monitor key support levels and look for bullish candlestick patterns or breakouts above resistance levels to confirm the upward movement.
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