Gold is currently trading inside a tight compression zone around 5135, where two important structures are meeting: a descending trendline from the previous high and a rising support trendline from recent higher lows.
When price gets squeezed between these types of structures, it often signals that the market is building liquidity before a larger directional move.
The key question now is whether gold will break upward toward higher liquidity or lose the structure and rotate lower again.
After the previous sell-off, gold has been gradually stabilizing while forming higher lows near the rising trendline. At the same time, the descending trendline continues to cap the upside, creating a classic triangle compression pattern.
Markets rarely stay compressed for long. Once liquidity is released, the move that follows can often be fast and directional.
Technical Overview
The current structure highlights a key reaction zone near 5134 – 5135, where buyers have repeatedly stepped in.
Above the market, two major resistance levels are visible:
• 5271 – intermediate resistance
• 5313 – major liquidity zone
These levels represent the most likely upside targets if a breakout occurs.
Key Levels
Support / Demand
• 5134
Resistance levels
• 5271
• 5313
IF–THEN Scenarios
📈 Bullish Scenario
If gold continues to hold above 5134 and breaks the descending trendline resistance, momentum could expand toward:
• 5271
• 5313
This would confirm a breakout from the compression structure.
📉 Bearish Scenario
However, if price fails to hold the 5134 demand zone, the bullish structure could weaken and trigger a deeper pullback toward lower liquidity levels.
The market is currently coiling between support and resistance, a structure that typically precedes a strong move once liquidity is released.
Traders should closely monitor the reaction around 5134, as it may determine whether the next move is a bullish breakout or another rotation lower.
When price gets squeezed between these types of structures, it often signals that the market is building liquidity before a larger directional move.
The key question now is whether gold will break upward toward higher liquidity or lose the structure and rotate lower again.
After the previous sell-off, gold has been gradually stabilizing while forming higher lows near the rising trendline. At the same time, the descending trendline continues to cap the upside, creating a classic triangle compression pattern.
Markets rarely stay compressed for long. Once liquidity is released, the move that follows can often be fast and directional.
Technical Overview
The current structure highlights a key reaction zone near 5134 – 5135, where buyers have repeatedly stepped in.
Above the market, two major resistance levels are visible:
• 5271 – intermediate resistance
• 5313 – major liquidity zone
These levels represent the most likely upside targets if a breakout occurs.
Key Levels
Support / Demand
• 5134
Resistance levels
• 5271
• 5313
IF–THEN Scenarios
📈 Bullish Scenario
If gold continues to hold above 5134 and breaks the descending trendline resistance, momentum could expand toward:
• 5271
• 5313
This would confirm a breakout from the compression structure.
📉 Bearish Scenario
However, if price fails to hold the 5134 demand zone, the bullish structure could weaken and trigger a deeper pullback toward lower liquidity levels.
The market is currently coiling between support and resistance, a structure that typically precedes a strong move once liquidity is released.
Traders should closely monitor the reaction around 5134, as it may determine whether the next move is a bullish breakout or another rotation lower.
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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.
⚜️Trade with Money Market Flow, logic, Price action
🔥Live Market Updates-Realtime Trading Plans & Signal
t.me/+sBwjxIJbdoFmNjk1
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 8 to 16 Signals VIP
MMFLOW gives you precision entries & BIGWIN profits
🔥Live Market Updates-Realtime Trading Plans & Signal
t.me/+sBwjxIJbdoFmNjk1
⚜️Risk Reward 1.3 to 2.5...
⚜️Daily 8 to 16 Signals VIP
MMFLOW gives you precision entries & BIGWIN profits
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.