Gold (XAU/USD) Demand Zone Bounce with Bullish Target Setup”Chart Analysis (Gold – XAU/USD)
1 . Overall Market Structure
The market was in a strong downtrend, shown by a sharp bearish move (big red candle drop).
After the fall, price entered a consolidation and recovery phase, forming higher lows.
Currently, price is showing a short-term bullish correction within a larger bearish context.
2. Demand Zone (Red Area)
The red shaded area is marked as a Demand Zone.
Price reacted strongly from this zone, indicating:
Strong buying interest
Institutional or smart money accumulation
This zone acts as a support area.
📍 Approx demand zone:
Lower level: ~4313
Upper level: ~4362
3. *Entry Area
* Buy entries are considered inside or just above the demand zone.
The bounce from this zone confirms bullish intent.
4. Stop Loss (SL)
Stop loss is placed below the demand zone.
This protects against a false breakout.
📍 SL: ~4313
5. *Target / Resistance Zone
* The green area shows the target zone.
This aligns with:
Previous structure resistance
Supply area
Labeled as TARGET POINT on the chart.
📍 Target: ~4440 – 4442
6. Risk –Reward Ratio
The setup offers a good risk-to-reward ratio.
Small risk (below demand zone) vs. larger upside move.
7. Trade Bias Summary
Aspect
Direction
Short-term
📈 Bullish
Medium-term
⚠️ Correction only
Long-term
📉 Bearish unless resistance breaks
✅ Conclusion
This is a bullish pullback trade after a strong bearish move.
Demand zone is respected → buyers are active.
Price is likely to move toward 4440–4442 if demand holds.
A break below 4313 invalidates the setup.
