In this technical outlook provided by Brokerir, Gold (XAU/USD) has experienced a sharp decline, finding support within the 2,881 – 2,875 demand zone. Based on price action, technical indicators, and key support levels, we anticipate a potential bullish reversal targeting the 2,914 resistance level.
Market Structure & Price Action
• Gold is currently trading around 2,882, stabilizing within a critical demand zone (2,881 – 2,875) after a strong bearish impulse.
• The formation of multiple rejection wicks at this support zone suggests buying pressure is emerging.
• If buyers step in, a potential bullish reversal could push the price toward the 2,914 resistance level.
Key Support & Resistance Levels
Level Type Expected Reaction
2,875 – 2,881 Demand Zone (Support) Possible price rebound, bullish reaction
2,914 Resistance First target for bullish movement
2,939 Major Resistance Extended bullish target if momentum sustains
Technical Indicator Analysis
MACD (Moving Average Convergence Divergence)
• MACD histogram is showing a decreasing bearish momentum, suggesting seller exhaustion.
• The MACD line is curving upward, indicating the possibility of a bullish crossover in the near term.
• If the MACD confirms an upward cross, it will strengthen the case for a bullish reversal.
Price Reaction at Support Zone
• The orange box (2,881 – 2,875) highlights a potential liquidity zone, where buy orders are expected to accumulate.
• A strong bullish reaction from this area would confirm a reversal pattern, targeting higher resistance zones.
Conclusion & Outlook
• If Gold holds above 2,875, it is likely to stage a reversal towards 2,914.
• Confirmation of bullish momentum would come from a MACD crossover and a break above 2,888.
• If momentum sustains beyond 2,914, Gold could extend its rally towards 2,939 in the medium term.
Brokerir will continue monitoring price action at the 2,881 – 2,875 zone for signs of accumulation and reversal confirmation. It is crucial to watch how price reacts at resistance levels to assess further bullish potential.
Market Structure & Price Action
• Gold is currently trading around 2,882, stabilizing within a critical demand zone (2,881 – 2,875) after a strong bearish impulse.
• The formation of multiple rejection wicks at this support zone suggests buying pressure is emerging.
• If buyers step in, a potential bullish reversal could push the price toward the 2,914 resistance level.
Key Support & Resistance Levels
Level Type Expected Reaction
2,875 – 2,881 Demand Zone (Support) Possible price rebound, bullish reaction
2,914 Resistance First target for bullish movement
2,939 Major Resistance Extended bullish target if momentum sustains
Technical Indicator Analysis
MACD (Moving Average Convergence Divergence)
• MACD histogram is showing a decreasing bearish momentum, suggesting seller exhaustion.
• The MACD line is curving upward, indicating the possibility of a bullish crossover in the near term.
• If the MACD confirms an upward cross, it will strengthen the case for a bullish reversal.
Price Reaction at Support Zone
• The orange box (2,881 – 2,875) highlights a potential liquidity zone, where buy orders are expected to accumulate.
• A strong bullish reaction from this area would confirm a reversal pattern, targeting higher resistance zones.
Conclusion & Outlook
• If Gold holds above 2,875, it is likely to stage a reversal towards 2,914.
• Confirmation of bullish momentum would come from a MACD crossover and a break above 2,888.
• If momentum sustains beyond 2,914, Gold could extend its rally towards 2,939 in the medium term.
Brokerir will continue monitoring price action at the 2,881 – 2,875 zone for signs of accumulation and reversal confirmation. It is crucial to watch how price reacts at resistance levels to assess further bullish potential.
Trade active
More than 80% of the target reached with 0 drawdownFollow me for more
Trade closed: target reached
Full target reached, around 400 pips of profit with zero drawdown.Follow me for more
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.
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.