Gold (XAUUSD) has finally broken out of a prolonged consolidation phase and is now showing a strong bullish structure on the daily chart. After several weeks of coiling between the support and resistance boundaries, this breakout marks a significant shift in momentum, indicating the potential for a powerful uptrend ahead.
Multi-Month Range Breakout: The Structure So Far
Over the past few months, Gold had been trading within a rising channel pattern. The support and resistance zones were clearly respected, forming a structure of higher lows and consistent rejections at the upper band near the 3450–3475 resistance zone. This area acted as a tough ceiling for bulls for nearly 4 months.
The breakout candle above the resistance was not only strong in body size but also supported by volume and follow-through. Price decisively crossed 3480, retested the resistance-turned-support zone, and continued upward momentum.
Target Projection: 3700+ Based on Measured Move
The projected target for this breakout is calculated using the height of the channel, which spans approximately 250 points from base to resistance. Adding this height to the breakout point (around 3450) gives a final projected target near 3700+, aligning with Fibonacci extension levels and previous price projections.
Immediate upside targets:
T1: 3550
T2: 3620
Final Projection: 3700+
Retest Opportunity: Ideal Entry on Dip
While momentum is strong, price may offer a pullback or retest toward the 3450–3470 zone before the next leg up. This area now acts as major support, and any dip here could offer a low-risk, high-reward long entry opportunity.
Traders who missed the initial breakout can wait for price action confirmation in this zone before entering, with a stop-loss below the previous swing low.
Risk Management & Strategy
Entry Zone: On breakout retest near 3450–3470
Stop-Loss: Below 3425 (swing low / invalidation zone)
Targets: Partial booking at 3550 & 3620; hold remainder for 3700+
Risk: As always, avoid aggressive sizing and maintain risk-reward discipline. False breakouts can occur if momentum fades.
Multi-Month Range Breakout: The Structure So Far
Over the past few months, Gold had been trading within a rising channel pattern. The support and resistance zones were clearly respected, forming a structure of higher lows and consistent rejections at the upper band near the 3450–3475 resistance zone. This area acted as a tough ceiling for bulls for nearly 4 months.
The breakout candle above the resistance was not only strong in body size but also supported by volume and follow-through. Price decisively crossed 3480, retested the resistance-turned-support zone, and continued upward momentum.
Target Projection: 3700+ Based on Measured Move
The projected target for this breakout is calculated using the height of the channel, which spans approximately 250 points from base to resistance. Adding this height to the breakout point (around 3450) gives a final projected target near 3700+, aligning with Fibonacci extension levels and previous price projections.
Immediate upside targets:
T1: 3550
T2: 3620
Final Projection: 3700+
Retest Opportunity: Ideal Entry on Dip
While momentum is strong, price may offer a pullback or retest toward the 3450–3470 zone before the next leg up. This area now acts as major support, and any dip here could offer a low-risk, high-reward long entry opportunity.
Traders who missed the initial breakout can wait for price action confirmation in this zone before entering, with a stop-loss below the previous swing low.
Risk Management & Strategy
Entry Zone: On breakout retest near 3450–3470
Stop-Loss: Below 3425 (swing low / invalidation zone)
Targets: Partial booking at 3550 & 3620; hold remainder for 3700+
Risk: As always, avoid aggressive sizing and maintain risk-reward discipline. False breakouts can occur if momentum fades.
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📈 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
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.