Gold (XAUUSD) is showcasing a classic parallel channel breakout retest pattern that could propel prices higher toward the 4225+ zone in the coming sessions.
Over the past several days, price action has been neatly contained within a parallel channel, bounded by an upward-sloping support line and a steady resistance band. Each swing high and low respected this range, forming a strong structural base for a potential breakout setup.
Recently, the price managed to break above the resistance zone, confirming bullish momentum. This breakout came after a strong impulse move from the channel's support, pushing above the resistance with increasing volume and strength.
Now, the price is revisiting the previous resistance — which is expected to act as a new support. This type of breakout retest is a healthy sign of a sustainable uptrend. If buyers defend this zone, it opens the door for the next bullish leg.
Key Observations:
Support Zone: Around 4100 (former resistance now acting as support)
Resistance Turned Support: Confirming strength in the breakout
Pattern Height Projection: The earlier swing height projected from the breakout point gives a bullish target above 4225
Confirmation Needed: A bounce from the retest zone with a strong candle will confirm the next leg up
Possible Trading Strategy:
Entry: On confirmation candle after retest (e.g., bullish engulfing on 1H or 4H)
Targets:
Target 1: 4165
Final Target: 4225+
Stop Loss: Below 4085 (just under the retest zone)
In summary, the structure favors bulls as long as price holds above the 4100 support. The clean breakout and retest setup, backed by prior channel compression, indicates that XAUUSD is preparing for a fresh upside wave. Keep an eye on the confirmation candle — this move could offer a low-risk, high-reward setup in gold.
Over the past several days, price action has been neatly contained within a parallel channel, bounded by an upward-sloping support line and a steady resistance band. Each swing high and low respected this range, forming a strong structural base for a potential breakout setup.
Recently, the price managed to break above the resistance zone, confirming bullish momentum. This breakout came after a strong impulse move from the channel's support, pushing above the resistance with increasing volume and strength.
Now, the price is revisiting the previous resistance — which is expected to act as a new support. This type of breakout retest is a healthy sign of a sustainable uptrend. If buyers defend this zone, it opens the door for the next bullish leg.
Key Observations:
Support Zone: Around 4100 (former resistance now acting as support)
Resistance Turned Support: Confirming strength in the breakout
Pattern Height Projection: The earlier swing height projected from the breakout point gives a bullish target above 4225
Confirmation Needed: A bounce from the retest zone with a strong candle will confirm the next leg up
Possible Trading Strategy:
Entry: On confirmation candle after retest (e.g., bullish engulfing on 1H or 4H)
Targets:
Target 1: 4165
Final Target: 4225+
Stop Loss: Below 4085 (just under the retest zone)
In summary, the structure favors bulls as long as price holds above the 4100 support. The clean breakout and retest setup, backed by prior channel compression, indicates that XAUUSD is preparing for a fresh upside wave. Keep an eye on the confirmation candle — this move could offer a low-risk, high-reward setup in gold.
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Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
📈 Trade Smarter with TradZoo!
📣 Telegram: t.me/tradzooIndex
📣 Forex Telegram: t.me/tradzoofx
📲 Mobile App: tradzoo.com/download
📲 Forex App:tradzoo.com/forex/download
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📣 Forex Telegram: t.me/tradzoofx
📲 Mobile App: tradzoo.com/download
📲 Forex App:tradzoo.com/forex/download
🔗 Website: bit.ly/tradzoopage
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.