Gold is showing signs of a bullish recovery after completing a strong corrective decline. The recent price action has formed a rounded bottom structure, indicating that selling pressure is fading while buyers gradually regain control.
The blue descending trendline has been broken, signaling a potential shift in market sentiment from bearish to bullish. Since the breakout, price has established a series of higher lows and is consolidating beneath the 4,220 resistance zone.
A cup-shaped recovery pattern appears to be developing, with the current pullback acting as a potential handle formation. If buyers maintain momentum and push above the recent swing highs, XAUUSD could trigger a bullish continuation move toward the 4,240–4,260 region. Cup-and-handle structures are commonly viewed as bullish continuation or reversal setups when confirmed by a breakout above resistance.
Key Levels:
Resistance: 4,220 – 4,240
Support: 4,180 – 4,080
Bullish Target: 4,260+
Invalidation: Sustained move below 4,080
Trading Outlook:
As long as price remains above the rounded-bottom support area, the short-term bias remains bullish. Traders may watch for a confirmed breakout above resistance for additional upside confirmation, while failure to hold higher lows could delay the recovery scenario.
This analysis is based on price action and chart structure and is not financial advice.
#XAUUSD #Gold #TradingView #PriceAction #TechnicalAnalysis #Forex #Bullish #CupAndHandle #GoldTrading #MarketAnalysis #TradingSetup #ChartAnalysis
The blue descending trendline has been broken, signaling a potential shift in market sentiment from bearish to bullish. Since the breakout, price has established a series of higher lows and is consolidating beneath the 4,220 resistance zone.
A cup-shaped recovery pattern appears to be developing, with the current pullback acting as a potential handle formation. If buyers maintain momentum and push above the recent swing highs, XAUUSD could trigger a bullish continuation move toward the 4,240–4,260 region. Cup-and-handle structures are commonly viewed as bullish continuation or reversal setups when confirmed by a breakout above resistance.
Key Levels:
Resistance: 4,220 – 4,240
Support: 4,180 – 4,080
Bullish Target: 4,260+
Invalidation: Sustained move below 4,080
Trading Outlook:
As long as price remains above the rounded-bottom support area, the short-term bias remains bullish. Traders may watch for a confirmed breakout above resistance for additional upside confirmation, while failure to hold higher lows could delay the recovery scenario.
This analysis is based on price action and chart structure and is not financial advice.
#XAUUSD #Gold #TradingView #PriceAction #TechnicalAnalysis #Forex #Bullish #CupAndHandle #GoldTrading #MarketAnalysis #TradingSetup #ChartAnalysis
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.