XAUUSD📌 1. What the chart shows
Instrument: Gold / US Dollar (XAU/USD)
Timeframe: 2h
Platform: TradingView
Current price trading around ~4198 USD
📌 2. Market structure on the chart
The chart shows a strong bullish trend, moving from the 3300–3600 range up into the 4200 area.
After this strong impulse, price entered a phase of correction and consolidation.
Price action seems to form a potential corrective structure (A)-(B)-(C):
Point (A) – first corrective top
Point (B) – lower swing low
Point (C) – second corrective high, weaker
This may indicate:
the end of a correction
or
the beginning of a larger trend reversal
📌 3. Highlighted zones
Several key demand and supply zones are marked on the chart as colored rectangles.
🟩 Upper green zones – potential bullish targets
First zone just above the current price
Second, high-level zone (approx. 4600–4700)
These zones represent areas where price could reach if the bullish trend continues.
🟩 Lower green zone – major demand zone
Located much lower, roughly at 3300–3500
Suggests a possible deep correction or liquidity sweep
A potential area where large buyers could step in
⬜ Gray/white rectangles – reaction / consolidation zones
Represent areas of previous accumulation or distribution
They may act as support or resistance if price revisits them.
📌 4. Red projected paths
The red lines indicate possible price scenarios:
🔺 Bullish scenario
Breakout to the upside
Gradual continuation toward upper supply zones
🔻 Bearish scenario
Strong downward impulse
Retracement (pullback)
Continuation lower into the big demand zone
This suggests the author is anticipating a potential major correction if price fails to break higher.
📌 5. Analytical approach
The chart appears to combine elements of:
Smart Money Concepts (SMC) / Wyckoff methodology
Supply & Demand zones
Elliott Wave corrective structure
The idea is to outline two realistic alternative paths:
Breakout continuation of the bullish trend
Sharp correction downward
Potential recovery afterwards
📌 6. Key psychological levels (shown on the right)
Maximum: 4381
Minimum: 3244
Most recent activity concentrated near 4100–4200
📌 7. General interpretation
The market is at a critical decision point.
Price currently sits:
At the top of the structure
Inside/near a supply zone
After a strong uptrend
Which means:
Upside continuation is possible if price breaks resistance
But there is significant risk of a deep correction if price rejects
✔️ Short 2-sentence summary
The chart shows XAU/USD in a strong uptrend, currently trading in a key supply zone that could lead to a further bullish continuation towards 4600+. However, a failure to break higher may trigger a deep correction towards the 3300–3500 demand area.
