XAU/USD has shown signs of bottoming out near the $3,300 support level, marked by strong buying interest (green arrow). After a sharp decline from the $3,430 resistance zone, the price found support and now appears to be forming a reversal pattern. The chart suggests a potential bullish breakout above minor resistance levels, with a projected target of $3,365. This move is supported by a clean bullish trajectory outlined on the chart. Key resistance remains near $3,365, while a sustained break below $3,300 would invalidate the bullish outlook.
🔍 Technical Analysis:
🔴 Previous Price Action:
Strong uptrend from July 18–23 took gold from around $3,280 to $3,430.
Sideways consolidation (highlighted in a yellow box) at the top near $3,430–$3,440, indicating a distribution phase.
Followed by a sharp bearish breakout and a downtrend from July 24 to July 29, with clear lower highs and lower lows (red arrows and red channel).
🟢 Current Setup:
Price has stabilized near the $3,310–$3,320 demand zone, as seen with the green support box and green arrow (bullish signal).
Rejection wick at the bottom suggests buyers are stepping in to defend the support.
The PMAX indicator also appears to be flattening, hinting at a possible trend reversal.
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📈 Bullish Scenario:
The forecasted move (blue path) shows a potential breakout from current levels toward $3,365, which aligns with a previous resistance zone.
Minor resistances near $3,335 and $3,350 must be cleared for the move to be confirmed.
Break and retest pattern expected before heading to the Target: $3,365.
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📉 Bearish Risk:
If price fails to hold above $3,310–$3,300, it may re-enter the bearish trend channel.
Breakdown below this zone could send price back toward $3,280 or even $3,260 levels.
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✅ Conclusion:
Gold is currently at a critical decision point. A sustained hold above $3,310 could lead to a bullish reversal toward $3,365. However, traders should remain cautious of a fakeout, especially with upcoming economic events (as seen with calendar icons).
🔍 Technical Analysis:
🔴 Previous Price Action:
Strong uptrend from July 18–23 took gold from around $3,280 to $3,430.
Sideways consolidation (highlighted in a yellow box) at the top near $3,430–$3,440, indicating a distribution phase.
Followed by a sharp bearish breakout and a downtrend from July 24 to July 29, with clear lower highs and lower lows (red arrows and red channel).
🟢 Current Setup:
Price has stabilized near the $3,310–$3,320 demand zone, as seen with the green support box and green arrow (bullish signal).
Rejection wick at the bottom suggests buyers are stepping in to defend the support.
The PMAX indicator also appears to be flattening, hinting at a possible trend reversal.
---
📈 Bullish Scenario:
The forecasted move (blue path) shows a potential breakout from current levels toward $3,365, which aligns with a previous resistance zone.
Minor resistances near $3,335 and $3,350 must be cleared for the move to be confirmed.
Break and retest pattern expected before heading to the Target: $3,365.
---
📉 Bearish Risk:
If price fails to hold above $3,310–$3,300, it may re-enter the bearish trend channel.
Breakdown below this zone could send price back toward $3,280 or even $3,260 levels.
---
✅ Conclusion:
Gold is currently at a critical decision point. A sustained hold above $3,310 could lead to a bullish reversal toward $3,365. However, traders should remain cautious of a fakeout, especially with upcoming economic events (as seen with calendar icons).
Trade closed: stop reached
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Clean charts | 🔍 Deep analysis | 📈 Consistent setups”
MY FREE FOREX &CRYPTO SIGNALS TELEGRAM CHANNEL:
t.me/+4KSkqllbBldiZDY8
MY FREE FOREX &CRYPTO SIGNALS TELEGRAM CHANNEL:
t.me/+4KSkqllbBldiZDY8
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.