Gold bulls are done or not yet?
Here's an analysis of the XAU/USD (Gold vs. U.S. Dollar) chart based on price action strategy:
1. Trend Analysis:
The overall trend appears to be bullish, as seen from the series of higher highs and higher lows in the price structure.
Recently, there has been a pullback, as indicated by the bearish candles on the right side of the chart.
2. Liquidity Zones:
Liquidity Void: There are visible liquidity voids (highlighted in red) around the $2,750 level, suggesting areas where price may return to fill gaps left by large, impulsive moves.
Liquidity Grab Areas: The chart also shows areas marked as "liquidity" where stop orders may have been triggered. These regions are potential reversal or retracement zones.
3. Support and Resistance Levels:
Resistance Zone: Around $2,760, there is a resistance level, as seen from multiple rejections. A break above this level could indicate further bullish continuation.
Support Zone: The $2,735 - $2,740 range acts as a support area. A break below this level might lead to further downside, targeting the next support around $2,717.
4. Price Action Observations:
The recent red bearish candle indicates sellers are actively testing the support area.
If buyers step in at this support zone ($2,735 - $2,740), there could be a bounce, targeting the $2,760 resistance zone again.
Failure to hold above $2,735 could lead to a further decline, possibly aiming for the $2,717 level as a next support.
5. Bias:
Bullish Bias: As long as price remains above $2,735, the bias remains cautiously bullish, with a potential retest of $2,760 and possibly higher if this level breaks.
Bearish Scenario: If price breaks below $2,735 decisively, the bias shifts bearish, with a target around $2,717.
6. Potential Trade Ideas:
Long Position: Enter around $2,735 - $2,740 with a stop below $2,730, targeting $2,760 and beyond.
Short Position: If price breaks below $2,735, look for a retracement back to this level to confirm resistance before entering short, targeting $2,717.
Summary
In summary, the market is at a critical support level, and price action in the next few candles will confirm the direction. Holding above $2,735 suggests bullish continuation, while a break below favors a bearish move.
1. Trend Analysis:
The overall trend appears to be bullish, as seen from the series of higher highs and higher lows in the price structure.
Recently, there has been a pullback, as indicated by the bearish candles on the right side of the chart.
2. Liquidity Zones:
Liquidity Void: There are visible liquidity voids (highlighted in red) around the $2,750 level, suggesting areas where price may return to fill gaps left by large, impulsive moves.
Liquidity Grab Areas: The chart also shows areas marked as "liquidity" where stop orders may have been triggered. These regions are potential reversal or retracement zones.
3. Support and Resistance Levels:
Resistance Zone: Around $2,760, there is a resistance level, as seen from multiple rejections. A break above this level could indicate further bullish continuation.
Support Zone: The $2,735 - $2,740 range acts as a support area. A break below this level might lead to further downside, targeting the next support around $2,717.
4. Price Action Observations:
The recent red bearish candle indicates sellers are actively testing the support area.
If buyers step in at this support zone ($2,735 - $2,740), there could be a bounce, targeting the $2,760 resistance zone again.
Failure to hold above $2,735 could lead to a further decline, possibly aiming for the $2,717 level as a next support.
5. Bias:
Bullish Bias: As long as price remains above $2,735, the bias remains cautiously bullish, with a potential retest of $2,760 and possibly higher if this level breaks.
Bearish Scenario: If price breaks below $2,735 decisively, the bias shifts bearish, with a target around $2,717.
6. Potential Trade Ideas:
Long Position: Enter around $2,735 - $2,740 with a stop below $2,730, targeting $2,760 and beyond.
Short Position: If price breaks below $2,735, look for a retracement back to this level to confirm resistance before entering short, targeting $2,717.
Summary
In summary, the market is at a critical support level, and price action in the next few candles will confirm the direction. Holding above $2,735 suggests bullish continuation, while a break below favors a bearish move.
Disclaimer
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