XAU/USD Chart Analysis — Triple Bottom Reversal Pattern
🔷 Chart Context:
Asset: Gold Spot (XAU/USD)
Timeframe: 2-hour (H2)
Chart Pattern: Triple Bottom
Market Structure: Previously bearish, transitioning into potential bullish reversal
🧩 Pattern Breakdown: Triple Bottom Formation
A Triple Bottom pattern has clearly developed, which is a strong bullish reversal formation that signals exhaustion in the downtrend and a potential trend reversal.
📍 Key Components:
Bottom 1: Price initially dropped and rebounded from the support zone around $3,247 – $3,250, forming the first bottom.
Bottom 2: Price retested the same zone again, creating a second low with rejection—confirming strong support.
Bottom 3: A final drop to the same zone was again rejected sharply, completing the Triple Bottom structure.
Each bottom is followed by higher highs, showing momentum building to the upside.
🔄 Support & Resistance Zones
Support Level:
Zone: ~$3,247.473
Significance: Proven support after three failed attempts to break lower, making it a high-confidence demand zone.
Resistance (Neckline):
Zone: ~$3,370
Significance: Price has tested this level multiple times. A breakout here confirms the Triple Bottom and opens room for a bullish continuation.
🎯 Trade Setup:
🔹 Entry:
Ideal Entry: On a confirmed breakout above the neckline resistance at ~$3,370, preferably with volume confirmation or a strong bullish candlestick close.
🔹 Take Profit (TP):
Target Price: $3,471.661
Reasoning: Measured move projection — the vertical distance from the support to the neckline is added above the breakout point.
🔹 Stop Loss (SL):
Level: $3,247.473
Reasoning: Placed below the support area and all three bottoms. If price breaks below this level, the Triple Bottom setup is invalidated.
📈 Market Sentiment & Momentum
The pattern indicates strong accumulation at the bottom levels.
The rejection wicks and bullish engulfing candlestick from the third bottom suggest renewed buying interest.
Momentum is shifting from bearish to bullish, supported by higher swing lows and the emergence of structure breaks.
🧠 Technical Confidence Factors:
Triple Bottom + Clean Support Zone — Sign of institutional demand.
Tight SL / High R:R Ratio — Excellent risk-reward with defined invalidation.
Breakout Structure — Ideal price action for breakout traders.
🔐 Conclusion:
This XAU/USD setup offers a bullish trade opportunity based on a textbook Triple Bottom pattern. With a well-defined support base and neckline resistance, a confirmed breakout would validate the bullish reversal and target $3,471. The setup presents favorable risk-to-reward dynamics for swing or position traders, provided proper confirmation is used.
🔷 Chart Context:
Asset: Gold Spot (XAU/USD)
Timeframe: 2-hour (H2)
Chart Pattern: Triple Bottom
Market Structure: Previously bearish, transitioning into potential bullish reversal
🧩 Pattern Breakdown: Triple Bottom Formation
A Triple Bottom pattern has clearly developed, which is a strong bullish reversal formation that signals exhaustion in the downtrend and a potential trend reversal.
📍 Key Components:
Bottom 1: Price initially dropped and rebounded from the support zone around $3,247 – $3,250, forming the first bottom.
Bottom 2: Price retested the same zone again, creating a second low with rejection—confirming strong support.
Bottom 3: A final drop to the same zone was again rejected sharply, completing the Triple Bottom structure.
Each bottom is followed by higher highs, showing momentum building to the upside.
🔄 Support & Resistance Zones
Support Level:
Zone: ~$3,247.473
Significance: Proven support after three failed attempts to break lower, making it a high-confidence demand zone.
Resistance (Neckline):
Zone: ~$3,370
Significance: Price has tested this level multiple times. A breakout here confirms the Triple Bottom and opens room for a bullish continuation.
🎯 Trade Setup:
🔹 Entry:
Ideal Entry: On a confirmed breakout above the neckline resistance at ~$3,370, preferably with volume confirmation or a strong bullish candlestick close.
🔹 Take Profit (TP):
Target Price: $3,471.661
Reasoning: Measured move projection — the vertical distance from the support to the neckline is added above the breakout point.
🔹 Stop Loss (SL):
Level: $3,247.473
Reasoning: Placed below the support area and all three bottoms. If price breaks below this level, the Triple Bottom setup is invalidated.
📈 Market Sentiment & Momentum
The pattern indicates strong accumulation at the bottom levels.
The rejection wicks and bullish engulfing candlestick from the third bottom suggest renewed buying interest.
Momentum is shifting from bearish to bullish, supported by higher swing lows and the emergence of structure breaks.
🧠 Technical Confidence Factors:
Triple Bottom + Clean Support Zone — Sign of institutional demand.
Tight SL / High R:R Ratio — Excellent risk-reward with defined invalidation.
Breakout Structure — Ideal price action for breakout traders.
🔐 Conclusion:
This XAU/USD setup offers a bullish trade opportunity based on a textbook Triple Bottom pattern. With a well-defined support base and neckline resistance, a confirmed breakout would validate the bullish reversal and target $3,471. The setup presents favorable risk-to-reward dynamics for swing or position traders, provided proper confirmation is used.
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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.
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.