Gold 4H – Compression Builds | Key Zones in FocusGold is consolidating beneath descending trendline resistance, compressing within a defined structure on the 4H chart. As volatility tightens, price is approaching a critical decision point. This post outlines the key actionable zones, ranked by risk, and highlights the stop-loss levels to manage exposure.
Technical Analysis:
Price action remains trapped within a descending triangle, marked by lower highs and flat support. Buyers have shown interest around the $3,313–$3,283 range, while broader structure still favors caution until a clean breakout or breakdown occurs.
We’ve identified three main zones, each offering different trade opportunities based on structure and risk tolerance:
🔴 $3,313 – Minor Intraday Level (Higher Risk):
This is not a formal support zone but a short-term reaction level. Positioned directly under descending trendline resistance, it's highly reactive and prone to stop hunts or liquidity spikes. Entries here carry elevated risk and require tighter stop placement.
Stop-loss: Below $3,301.165 – A clean invalidation if structure breaks.
🟠 $3,283 – 4H Support Shelf (Medium Risk):
A more defined level based on prior multi-candle rejections. This zone has shown stability and represents the core of current consolidation. A breakdown below here would likely trigger downside continuation.
Stop-loss: $3,263.450 – Under the consolidation base, confirming bearish expansion.
🟢 $3,240 – 4H Support Zone (Low Risk – Backed by Daily Structure):
This zone aligns with a broader daily support level and has not been tested in the current cycle. It offers a structurally clean and lower-risk long entry, especially for swing traders.
Stop-loss: $3,218.240 – Invalidation of the daily support structure.
Outlook:
Bullish trigger: Break and close above $3,320 and the trendline → opens path toward $3,420 and $3,510.
Bearish trigger: Clean loss of $3,283 → exposes downside toward $3,240, then possibly $3,127.
Current bias: Neutral-to-bullish while price holds above $3,283 and compression remains intact.
Note: The FOMC decision on Wednesday may act as a catalyst. A dovish tone could support bullish continuation in gold.
✅ Conclusion:
Gold is compressing within a clean descending triangle structure. If buyers defend one of the mapped support zones, we could see a push toward $3,420 and possibly $3,510. Until a confirmed breakdown below $3,283 occurs, the bias remains neutral-to-bullish, with opportunity on structured pullbacks.
Not financial advice. Like & follow for more Gold trade setups and structured market analysis.
