Gold (XAU/USD), 4H chart setup/ChannelGold (XAU/USD), 4H chart setup:
🔍 Technical Analysis:
1. Downtrend Channel (Past Price Action):
The chart shows a clearly defined descending channel (two white trendlines).
Price respected the channel structure until a bullish breakout occurred.
2. Breakout Confirmation:
Price broke above the upper boundary of the descending channel.
This breakout suggests a potential bullish reversal or at least a retracement move upward.
3. Demand & Supply Zones:
A demand zone is visible below the breakout point, acting as a support base.
The price is currently interacting with a minor supply zone (resistance) where sellers may emerge temporarily.
A projected pullback (dotted yellow line) is shown before price continues upward — indicating a plan for a retest and continuation.
📈 Trade Setup:
Long Trade Idea is clearly illustrated:
Entry: Around current levels after a minor pullback or confirmation breakout.
Stop-Loss: Below the demand zone (likely around 3,150–3,180).
Take-Profit: Very ambitious — TP set near 3,406–3,408, well above recent highs.
Risk-Reward Ratio: Appears to be 1:4 or higher, which is excellent.
📌 Pattern in Play:
The current setup follows a “Break – Retest – Continuation” logic.
The market broke out of the bearish structure, now preparing for a possible higher high formation.
Classic reversal structure supported by bullish engulfing candles and volume pickup.
🧠 Conclusion:
Pattern: Bullish breakout & retest (early stages of trend reversal).
Bias: Bullish as long as the price stays above the demand zone.
Trade Plan: Wait for confirmation from the pullback or enter after a solid bullish candle breaks above the supply zone.
