Gold (XAU/USD) Bullish Reversal – Wedge Breakout Targeting $3,38

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Here's a breakdown of the trading idea presented in the chart:


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🟡 XAU/USD – Bullish Reversal Setup (1H Chart)

📊 Technical Overview:

Instrument: Gold Spot (XAU/USD)

Timeframe: 1-Hour

Current Price: ~$3,330

Target Price: $3,386.96

Potential Upside: +63.29 pts (+1.90%)



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🔍 Key Technical Elements:

1. Falling Wedge Breakout:

Price action shows a falling wedge (a bullish reversal pattern).

A breakout occurred, confirmed with strong bullish candles and increased volume.



2. Support Zone:

Price rebounded from a strong support level around $3,305–$3,310.

Marked by a green arrow, suggesting buyer interest.



3. Resistance Turned Support:

The previous resistance at ~$3,330 is now acting as new support.

Retest of this level could confirm continuation.



4. Next Resistance Zones:

Minor resistance: ~$3,350

Main resistance / Target: $3,386.96



5. EMA Confluence:

50 EMA (~$3,338.78) is being tested.

200 EMA (~$3,359.61) aligns with next resistance — possible area of consolidation or pullback.



6. RSI Indicator:

RSI is near 50, suggesting neutral momentum but with room for further upside.





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📈 Trade Idea:

Bias: Bullish

Entry Zone: On pullback near $3,330 (confirmed support)

Target: $3,386.96

Stop Loss: Below $3,310 (under wedge breakout)

Risk-Reward: Favorable (>2:1 if managed properly)



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📝 Conclusion:

This is a bullish reversal setup with confirmation from price action, RSI stabilization, and a breakout from a falling wedge. A successful retest of the $3,330 support could offer a good long opportunity toward $3,387.




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