The Direction of Gold 25.01.20Hello, this is Greedy All-Day.
Today’s analysis focuses on gold.
Gold Daily Chart Analysis
Chart:
Key Observations:
Gold recently broke above its long-term descending resistance trendline.
The resistance trendline began at the high on October 31, 2024, and was broken on January 16, 2025.
After breaking the resistance, gold reached a high near 2761, which failed to break above the top of the orange supply zone.
The current resistance stands at 2759.2, below the orange zone's high of 2761.3, leading to a short-term pullback.
Support Test and Outlook:
The yellow resistance trendline has turned into support after a successful retest.
Although the orange box supply zone has not been broken, the overall bullish momentum remains intact.
Next Resistance Levels:
If 2761.3 is broken, the next resistance lies at 2772.6, the upper wick resistance level within the purple box.
Breaking above 2772.6 could open the door for a potential retest of the all-time high near 2801.8.
Long-Term Trendline and Supply Zones
Chart:
Downside Risk:
A potential short-term trend reversal requires the green box to be broken.
Current key support for a breakdown: 2666 (below this level, gold will likely fall out of the Ichimoku Cloud).
A break below the red box supply zone’s lower boundary (2595) could signal a bearish shift in the larger pennant structure.
Current Gold Levels and Trading Strategies
Chart:
Buy Strategy:
A breakout above 2761.3 is crucial for initiating a long position.
If broken, the next target is the 2772 resistance level, with further potential upside to all-time highs if 2772 is cleared.
Sell Strategy:
Focus on the range between 2729.2–2720.9 for sell signals.
For gold to return to bearish momentum, the current support trendline (yellow) must break and turn back into resistance.
If the price breaks below 2729.2–2720.9, the next support level is the red ascending trendline.
Summary
Bullish Scenario: A breakout above 2761.3 could signal continuation toward 2772.6 and beyond.
Bearish Scenario: A break below 2729.2–2720.9 could lead to a deeper correction toward the red ascending trendline or lower levels.
Stay strategic and monitor key levels carefully for potential opportunities. 🚀
