Gold Futures
Long

Gold Futures Bullish Setup – Entry at Demand Zone

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1. Channel Formation

The price is moving inside a rising parallel channel (blue lines).

Recently, the price broke below the midline (dashed blue) of the channel, indicating short-term weakness.

2. Trade Setup: Long (Buy) Position

The chart indicates a bullish outlook, expecting a price reversal from the demand zone.

🔹 Entry Zone

Entry Price: ₹116,251 – ₹116,277

This is marked with a grey zone, which aligns with a support area and previous consolidation.

🔻 Stop Loss (SL)

Stop Loss Price: ₹115,705 – ₹115,729

Placed just below the lower boundary of the support zone to protect against a false breakout.

🎯 Target (TP)

Target Price: ₹119,331 – ₹119,338 (LABA target point)

This lies above recent highs and near the upper boundary of the channel, suggesting continuation of the bullish trend.

3. Risk-Reward Ratio

The blue shaded box indicates a reward zone.

The trade has a favorable Risk-Reward Ratio (RRR) > 2:1, which is considered a strong setup.

🧠 Interpretation & Strategy

The red curved arrow indicates expected price action: a short-term pullback into the demand zone, followed by a bullish bounce toward the target.

The structure suggests a buy-the-dip opportunity within an ongoing uptrend.

⚠️ Key Takeaways
Component Value (INR)
Entry Zone 116,251 – 116,277
Stop Loss 115,705 – 115,729
Target 119,331 – 119,338
Trend Bullish inside channel
Risk/Reward Favorable (>2:1)
✅ Conclusion

This setup represents a bullish continuation pattern. If price revisits the highlighted demand/support zone, and forms bullish reversal candles (e.g., hammer, bullish engulfing), it could offer a high-probability long entry toward the upper end of the channel near ₹119,338.

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