In this chart, the overall structure of gold price (XAUUSD) remains within a medium-term bullish trend, clearly supported by the ascending blue trendline. After the sharp drop at the beginning of the month and the formation of a major low, the market entered a recovery phase. By printing higher lows and higher highs, price action signals a clear return of demand, suggesting that the main selling pressure has already been absorbed and the market is preparing for a continuation of the upward move.
A key highlight in this structure is the Liquidity Grab, marked by the purple zone. Price briefly swept below previous lows, triggering sell-side liquidity, and then quickly reclaimed the range with strong momentum. This type of behavior is typically associated with smart money activity and indicates seller weakness in that area, often acting as a catalyst for impulsive bullish moves in the next phase.
At the moment, price is holding above the dynamic support of the rising trendline as well as a short-term horizontal support. The next major area of interest is the upper supply zone, highlighted by the red box, which previously caused strong bearish reactions. The most likely scenario is a shallow correction or controlled pullback, followed by a breakout above the mid-range resistance, opening the path toward this higher supply zone.
As long as the bullish structure remains intact and price does not break below the trendline with strong confirmation, the probability of continuation to the upside remains high. However, price reaction around the intermediate resistance levels will be critical for final confirmation. Overall, this chart reflects a market that has completed a liquidity sweep and is now in a decision phase, potentially setting up a strong directional move that can offer attractive opportunities for patient traders.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.