Gold is currently showing signs of a potential bullish recovery after a prolonged bearish move. Price formed a strong liquidity sweep near the weak low area, followed by a Change of Character (CHoCH), indicating a possible shift from bearish momentum toward bullish structure.
Demand Zone & Bullish Scenario
Price is holding above the marked demand zone around 4,040–4,083. As long as this zone remains protected, buyers have the opportunity to regain control. A confirmed Break of Structure (BOS) above nearby resistance levels will strengthen the bullish continuation setup.
Upside Targets
If price continues to respect the demand zone and breaks resistance with confirmation:
Target 1: 4,430 area (first liquidity objective)
Target 2: 4,651 area (major resistance/liquidity level)
Target 3: 4,850–4,900 area (strong high liquidity zone)
Invalidation Scenario
A strong breakdown below the 4,040 support level will invalidate the bullish setup. A move below this area may trigger another liquidity hunt toward lower levels before any potential reversal.
SMC Perspective
The current structure suggests:
Liquidity sweep completed near the lows
CHoCH confirmed on the lower structure
Price reacting from demand zone
Next confirmation required: BOS above resistance
The key level to watch is the 4,040 demand area. Holding this zone keeps the bullish scenario valid; losing it shifts the bias back toward bearish continuation.
Demand Zone & Bullish Scenario
Price is holding above the marked demand zone around 4,040–4,083. As long as this zone remains protected, buyers have the opportunity to regain control. A confirmed Break of Structure (BOS) above nearby resistance levels will strengthen the bullish continuation setup.
Upside Targets
If price continues to respect the demand zone and breaks resistance with confirmation:
Target 1: 4,430 area (first liquidity objective)
Target 2: 4,651 area (major resistance/liquidity level)
Target 3: 4,850–4,900 area (strong high liquidity zone)
Invalidation Scenario
A strong breakdown below the 4,040 support level will invalidate the bullish setup. A move below this area may trigger another liquidity hunt toward lower levels before any potential reversal.
SMC Perspective
The current structure suggests:
Liquidity sweep completed near the lows
CHoCH confirmed on the lower structure
Price reacting from demand zone
Next confirmation required: BOS above resistance
The key level to watch is the 4,040 demand area. Holding this zone keeps the bullish scenario valid; losing it shifts the bias back toward bearish continuation.
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What You'll Get
Daily Forex signals with high accuracy
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Technical & fundamental analysis
Risk management tips to protect your capital
Join now and start profit daily free signal
t.me/+n8IDsacq2xxiMTY0
Daily Forex signals with high accuracy
t.me/+EdfnjydA0JIwZjM8
Technical & fundamental analysis
Risk management tips to protect your capital
Join now and start profit daily free signal
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Related publications
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.