Gold remains in a strong uptrend on the weekly timeframe and has managed to hold above the key psychological level of $3,500, pushing higher toward $3,643 at the time of writing. This signals that bullish momentum is still intact. However, a closer look at the chart reveals potential scenarios for the coming weeks.
Overall Market Structure
Main Trend: Strongly bullish
Key Support: $3,500 (psychological level + breakout zone of the flag pattern)
Weekly Demand Zone: $3,030 – $2,955
Short-Term Resistance: $3,750 – $3,800
The chart shows that price successfully broke out of a bullish flag pattern and started a new impulsive move upward. Holding above this breakout level indicates a possible continuation of the rally in the short term.
Bullish Scenario (Primary)
If gold holds above $3,500 and confirms support, we could see a move toward the $3,750 – $3,800 resistance area. A strong breakout above this zone would open the door for higher targets such as $3,950 and even $4,000.
🔑 Confirmation for this scenario:
Weekly close above $3,650
Rising trading volume near current levels
Successful retest (pullback) of $3,500 as support
Bearish / Correction Scenario (Alternative)
If gold fails to hold above $3,650 and breaks below $3,500 with strong momentum, a deeper correction could follow toward $3,200 or even the weekly demand zone at $3,030 – $2,955. Such a move could present an attractive buying opportunity for mid-term traders.
🔑 Confirmation for this scenario:
Strong weekly close below $3,500
Bearish divergence on RSI and slowing momentum
Summary & Trading Strategy
The overall market bias remains bullish, but the $3,750 – $3,800 area is a strong resistance zone that could trigger a temporary pullback. The most effective strategies for traders right now:
Short-term traders: Look for buy setups on a pullback to $3,500 with targets near $3,750
Mid-term traders: Wait for a deeper dip into $3,200 – $3,000 to get a better risk/reward entry
Stop-loss: A weekly close below $3,500
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.