Gold Technical Analysis: Potential Bounce Within a Channel
Updated
The provided chart shows a clear bullish structure, with Gold trading within an ascending channel on the daily timeframe.
However, recent price action indicates a pullback from the channel's upper resistance. Below is the detailed analysis:
Price Structure: Gold has been respecting the boundaries of the ascending channel, with higher highs and higher lows confirming the bullish trend.
Internal Trendline: The internal trendline has been tested and temporarily broken, leading to the ongoing retracement.
Support Zone: The price has reached a significant horizontal support zone ($2,530-$2,490), coinciding with the lower boundary of the channel. This area is expected to act as a strong support for a potential rebound.
However, recent price action indicates a pullback from the channel's upper resistance. Below is the detailed analysis:
Price Structure: Gold has been respecting the boundaries of the ascending channel, with higher highs and higher lows confirming the bullish trend.
Internal Trendline: The internal trendline has been tested and temporarily broken, leading to the ongoing retracement.
Support Zone: The price has reached a significant horizontal support zone ($2,530-$2,490), coinciding with the lower boundary of the channel. This area is expected to act as a strong support for a potential rebound.
- Scenario 1 (Bullish Rebound): If the price bounces from the current support zone, it could retest the key resistance at $2,700 and potentially aim for the channel's upper boundary.
- Scenario 2 (Bearish Breakdown): A confirmed break below $2,490 could invalidate the channel and lead to further downside movement, targeting lower support zones around $2,300.
Trade closed: target reached
the blue area touched!
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