Gold Spot / U.S. DollarUpdated Gold XAUUSD Possible Move 06.02.2025
Market Analysis: Incomplete Head and Shoulders Pattern with Breakout & Retest Strategy
Pattern Identified:
The chart presents an incomplete Head and Shoulders (H&S) pattern, which suggests a potential reversal or continuation depending on price action at key levels. The neckline of the pattern aligns with the green support zone.
Key Levels:
Resistance Zone (Red Area - ~2,872): Price has tested this zone multiple times, making it a key level for a breakout.
Support Zone (Green Areas - ~2,860 and ~2,844): These zones act as crucial demand areas, where price could either bounce or break lower.
Possible Trade Scenarios:
Bullish Breakout:
If price breaks above the red resistance (~2,872) and successfully retests it as support, this would confirm a bullish continuation.
Entry Signal: Buy after a confirmed retest with bullish momentum.
Target: Next resistance levels around 2,884 - 2,890.
Stop-Loss: Below the previous structure (~2,864).
Bearish Breakdown:
If price fails at resistance and breaks below the green support (~2,860), a bearish move is likely.
Entry Signal: Sell after a successful retest of the broken support (~2,860) as new resistance.
Target: Lower support zone around 2,844.
Stop-Loss: Above the broken level (~2,868).
Neutral Range-Bound Scenario:
If price remains trapped between 2,860 and 2,872, traders should wait for a breakout before entering trades.
Trade Signal (Based on Breakout Confirmation)
Buy Signal: If price breaks and retests above 2,872, enter long with a target of 2,884+.
Sell Signal: If price breaks and retests below 2,860, enter short with a target of 2,844.
This strategy ensures safe trading by waiting for confirmation before taking positions.
Kindly follow, comment, and like to show support.
Pattern Identified:
The chart presents an incomplete Head and Shoulders (H&S) pattern, which suggests a potential reversal or continuation depending on price action at key levels. The neckline of the pattern aligns with the green support zone.
Key Levels:
Resistance Zone (Red Area - ~2,872): Price has tested this zone multiple times, making it a key level for a breakout.
Support Zone (Green Areas - ~2,860 and ~2,844): These zones act as crucial demand areas, where price could either bounce or break lower.
Possible Trade Scenarios:
Bullish Breakout:
If price breaks above the red resistance (~2,872) and successfully retests it as support, this would confirm a bullish continuation.
Entry Signal: Buy after a confirmed retest with bullish momentum.
Target: Next resistance levels around 2,884 - 2,890.
Stop-Loss: Below the previous structure (~2,864).
Bearish Breakdown:
If price fails at resistance and breaks below the green support (~2,860), a bearish move is likely.
Entry Signal: Sell after a successful retest of the broken support (~2,860) as new resistance.
Target: Lower support zone around 2,844.
Stop-Loss: Above the broken level (~2,868).
Neutral Range-Bound Scenario:
If price remains trapped between 2,860 and 2,872, traders should wait for a breakout before entering trades.
Trade Signal (Based on Breakout Confirmation)
Buy Signal: If price breaks and retests above 2,872, enter long with a target of 2,884+.
Sell Signal: If price breaks and retests below 2,860, enter short with a target of 2,844.
This strategy ensures safe trading by waiting for confirmation before taking positions.
Kindly follow, comment, and like to show support.
Note
Our intra day setup gave away 100+ setup on successfully retesting the 2860 then went to hit 2849 area.
Trade closed: target reached
Target 2846 reached successfully. More than 200+ pips in the profit. Enjoy.
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✅Free Telegram Group
t.me/+gdXxCx5R3okwZTc0
Twitter 👇
twitter.com/QuinnGoldTrader
WhatsApp👇
wa.me/message/HRLMFQNPUGIRF1
t.me/+gdXxCx5R3okwZTc0
Twitter 👇
twitter.com/QuinnGoldTrader
WhatsApp👇
wa.me/message/HRLMFQNPUGIRF1
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.