Gold Holds Above OB 4344, Buyers May Prepare for a Recovery Move
Gold is showing signs of short-term recovery after the strong sell-off from the previous high. On the H1 chart, price has created a clear reaction around the lower liquidity area and is now holding above the important OB zone near 4344. As long as this zone continues to act as support, the intraday bias can lean toward a corrective bullish move.
Fundamental Analysis
Gold is still moving inside a sensitive market environment where traders are watching USD strength, bond yields, and upcoming US data. After a sharp decline, the market may need a technical recovery before choosing the next larger direction. This is why chasing late shorts at the current price may carry more risk, especially when price is already reacting near a demand and liquidity zone.
Technical Analysis
The main structure on H1 shows that gold dropped aggressively after breaking the previous structure, leaving several imbalance zones and FVG areas above. These unfilled areas may become magnets if buyers continue to defend the current base.
The most important point on today’s chart is the OB around 4344. Price is currently trading above this zone, and the reaction shows that buyers are trying to build a short-term base. If gold continues to hold above 4344, the next move may target the liquidity area near 4365–4370 first, then extend toward the higher imbalance and OB zones around 4400–4460.
There is also a visible inverse head and shoulders structure forming on the chart. The left shoulder was created near the 4310–4320 area, the head formed deeper around 4265–4275, and the right shoulder has formed near 4315–4325. This structure suggests that sellers may be losing pressure after the deeper sweep. A confirmed break above the neckline/liquidity area near 4365–4370 would strengthen the bullish recovery scenario.
Key Price Zones
Support / Buy reaction zone: 4331–4340
Key OB support: 4344
Neckline / liquidity zone: 4365–4370
First upside target: 4385–4400
Higher target zone: 4458–4470
Invalidation area: below 4331, especially if price closes below 4325
Trading Plan
Primary Scenario – Buy Setup
Entry: 4340–4345, only if price holds above the OB and shows bullish confirmation
Stop Loss: below 4331 or below the right-shoulder low
Take Profit 1: 4365–4370
Take Profit 2: 4385–4400
Take Profit 3: 4458–4470
Entry Conditions
Price must stay above OB 4344.
A bullish reaction candle or lower-timeframe CHOCH is preferred.
The inverse head and shoulders neckline around 4365–4370 should be watched carefully.
A clean break and retest above the neckline would make the bullish setup stronger.
Alternative Scenario
If gold fails to hold above 4331–4340 and breaks below the right-shoulder area, the bullish structure becomes weaker. In that case, price may return to test the lower liquidity zone around 4315–4300 before any new recovery attempt.
Sell Conditions
Selling is only more reasonable if price breaks below 4331 and fails to reclaim 4344. A clean H1 close below this area may invalidate the buy setup and open the way for a deeper liquidity sweep.
Overall View
For today, the priority is to look for buy opportunities while gold remains above the OB 4344. The inverse head and shoulders structure supports the idea of a possible recovery move, but confirmation is still required. The key level to watch is 4365–4370. If buyers break this area, gold may continue higher toward the next imbalance zones.
Do you think gold can confirm the inverse head and shoulders breakout today?
Gold is showing signs of short-term recovery after the strong sell-off from the previous high. On the H1 chart, price has created a clear reaction around the lower liquidity area and is now holding above the important OB zone near 4344. As long as this zone continues to act as support, the intraday bias can lean toward a corrective bullish move.
Fundamental Analysis
Gold is still moving inside a sensitive market environment where traders are watching USD strength, bond yields, and upcoming US data. After a sharp decline, the market may need a technical recovery before choosing the next larger direction. This is why chasing late shorts at the current price may carry more risk, especially when price is already reacting near a demand and liquidity zone.
Technical Analysis
The main structure on H1 shows that gold dropped aggressively after breaking the previous structure, leaving several imbalance zones and FVG areas above. These unfilled areas may become magnets if buyers continue to defend the current base.
The most important point on today’s chart is the OB around 4344. Price is currently trading above this zone, and the reaction shows that buyers are trying to build a short-term base. If gold continues to hold above 4344, the next move may target the liquidity area near 4365–4370 first, then extend toward the higher imbalance and OB zones around 4400–4460.
There is also a visible inverse head and shoulders structure forming on the chart. The left shoulder was created near the 4310–4320 area, the head formed deeper around 4265–4275, and the right shoulder has formed near 4315–4325. This structure suggests that sellers may be losing pressure after the deeper sweep. A confirmed break above the neckline/liquidity area near 4365–4370 would strengthen the bullish recovery scenario.
Key Price Zones
Support / Buy reaction zone: 4331–4340
Key OB support: 4344
Neckline / liquidity zone: 4365–4370
First upside target: 4385–4400
Higher target zone: 4458–4470
Invalidation area: below 4331, especially if price closes below 4325
Trading Plan
Primary Scenario – Buy Setup
Entry: 4340–4345, only if price holds above the OB and shows bullish confirmation
Stop Loss: below 4331 or below the right-shoulder low
Take Profit 1: 4365–4370
Take Profit 2: 4385–4400
Take Profit 3: 4458–4470
Entry Conditions
Price must stay above OB 4344.
A bullish reaction candle or lower-timeframe CHOCH is preferred.
The inverse head and shoulders neckline around 4365–4370 should be watched carefully.
A clean break and retest above the neckline would make the bullish setup stronger.
Alternative Scenario
If gold fails to hold above 4331–4340 and breaks below the right-shoulder area, the bullish structure becomes weaker. In that case, price may return to test the lower liquidity zone around 4315–4300 before any new recovery attempt.
Sell Conditions
Selling is only more reasonable if price breaks below 4331 and fails to reclaim 4344. A clean H1 close below this area may invalidate the buy setup and open the way for a deeper liquidity sweep.
Overall View
For today, the priority is to look for buy opportunities while gold remains above the OB 4344. The inverse head and shoulders structure supports the idea of a possible recovery move, but confirmation is still required. The key level to watch is 4365–4370. If buyers break this area, gold may continue higher toward the next imbalance zones.
Do you think gold can confirm the inverse head and shoulders breakout today?
Gold · SMC · 5+ years. t.me/+R38arB9C3aJhMWZl
Reading institutional footprints in XAUUSD — Order Blocks · FVG · Liquidity · Structure. Weekly outlook every Monday. Where smart money leads, we follow
t.me/+R38arB9C3aJhMWZl
Reading institutional footprints in XAUUSD — Order Blocks · FVG · Liquidity · Structure. Weekly outlook every Monday. Where smart money leads, we follow
t.me/+R38arB9C3aJhMWZl
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.
Gold · SMC · 5+ years. t.me/+R38arB9C3aJhMWZl
Reading institutional footprints in XAUUSD — Order Blocks · FVG · Liquidity · Structure. Weekly outlook every Monday. Where smart money leads, we follow
t.me/+R38arB9C3aJhMWZl
Reading institutional footprints in XAUUSD — Order Blocks · FVG · Liquidity · Structure. Weekly outlook every Monday. Where smart money leads, we follow
t.me/+R38arB9C3aJhMWZl
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.