XAUUSD Analysis : Bullish Move Toward Key Resistance + Target🟩 Overview:
Gold is currently showing a clear bullish breakout on the 2-hour timeframe. The market structure has shifted from a downtrend into a bullish phase, with price now approaching a critical Reversal Zone. Let’s break down the key levels, structure shifts, and potential trade opportunities.
🔍 1. Structure Shift – Trendline Break & BOS Signals:
The price previously followed a Blue Ray Descending Trendline, which acted as dynamic resistance and guided the bearish trend.
As highlighted, “Blue Ray Always Continue Trend” – but in this case, we’ve seen a clean Break of Structure (BOS) that invalidated the bearish setup.
A Minor BOS occurred first, which hinted at weakening selling pressure.
Later, a Major BOS confirmed the bullish transition as the price broke above a key resistance level with strong momentum.
This transition was supported by consistent higher lows and a breakout above the descending resistance trendline — a classic reversal signal.
🟩 2. Demand Zone Reaction – Major Support Held Firm:
The Major Support Zone between $3,280 – $3,300 provided a strong base for buyers.
Multiple wick rejections and bullish engulfing patterns near this zone indicated aggressive buyer interest.
This support has now become the foundation for the recent bullish rally.
🎯 3. Next Target & Reversal Zone:
The current price is hovering around $3,358, showing strong bullish momentum.
The next major resistance area is marked between $3,380 – $3,400, identified as the Next Target + Reversal Zone.
This zone is critical — it aligns with a historical supply area and the previous market swing highs.
Traders should be cautious here, as price may react sharply. Reversal patterns (like bearish engulfing, pin bars, or double tops) could signal a potential retracement.
⚠️ 4. Trade Plan:
🟢 Bullish Bias (Short-Term):
If you entered from the support or trendline breakout, continue to hold long positions until price nears the reversal zone.
Trail stop-loss under the most recent higher low to secure profits.
🔴 Bearish Scenario (Near-Term Reversal Play):
Watch for bearish rejection patterns in the $3,380 – $3,400 zone.
If confirmation appears, potential short setups could offer a retracement back to $3,330 – $3,320.
📌 Key Levels Summary:
Major Support Zone: $3,280 – $3,300 ✅
Next Target + Reversal Zone: $3,380 – $3,400 ⚠️
Current Price: $3,358
Major BOS Level: Confirmed
Trendline: Broken with strong bullish pressure
🧠 Final Thoughts:
Gold has officially shifted gears. The bullish breakout is in motion, and the trendline break + BOS combo supports further upside — at least until the reversal zone is tested. However, this is also where the market could exhaust, making it crucial to monitor price action closely.
Stay patient, wait for confirmation, and let the levels guide your next move.
