The chart represents the daily time frame (1D) of Gold Spot/USD (XAUUSD). Here's a breakdown of the key elements and analysis:
Key Observations: 1. Zones Highlighted: - Red Zone (Resistance): The area between $2,770 and $2,790 represents a significant supply/resistance zone where price is likely to face selling pressure. - Green Zone (Potential Target Area): Indicates a long position or bullish sentiment aiming for price to reach the upper red zone.
2. Key Levels: - $2,790.00: Likely a critical high or resistance level. - $2,721.61: A notable support or breakout level currently breached to the upside. - $2,606.10 and $2,582.31: Previously identified support levels. - $2,536.79 (BOS - Break of Structure): Indicates a structural low that was broken earlier, signaling bearish momentum, but this has since reversed.
3. Market Structure: - CHOCH (Change of Character): Indicates a shift from bearish to bullish market structure as buyers gained control after breaking through a key resistance. - LQ Sweep (Liquidity Sweep): A move designed to clear liquidity below a certain level, trapping sellers before reversing to the upside. - Double T LQ (Double Top Liquidity): Suggests a zone where liquidity may have been grabbed from stop-loss orders above the highs.
4. Imbalance Filled: - The chart highlights a previous price inefficiency or "imbalance" that has been filled, indicating price efficiency and potential continuation of the trend.
5. Bullish Order Flow: - The market has transitioned into bullish momentum, with higher highs and higher lows forming after the BOS and CHOCH.
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Probable Scenarios: 1. Bullish Continuation: - The price is targeting the resistance zone around $2,770–$2,790. - A breakout above this zone could lead to new highs with potential for strong bullish momentum.
2. Rejection Scenario: - If the price fails to break the resistance zone, it may retrace back to retest lower support levels, such as $2,721 or even $2,606.
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Trading Insights: - Long Bias: Entering after the CHOCH and liquidity sweep suggests the trend is bullish. Holding positions until price reaches the resistance zone is viable, but watch for rejection signals. - Risk Management: Monitor price action around $2,770–$2,790. Set stop-losses below significant support levels like $2,721 to protect against a reversal.
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Let me know if you'd like further insights or a more detailed strategy based on this chart!
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