Gold Price Analysis: A Closer Look at Key Levels & Future Moves!

13 Jul

Trading Idea Breakdown for XAUUSD
Chart Overview:
Time Frame: 4-hour chart
Instrument: Gold Spot (XAUUSD)

Key Levels and Zones:
Daily LQZ (Liquidity Zone):
Level: 2450.370
Significance: Major liquidity area where price is likely to experience significant reactions.

4-hour / LQZ:
Level: 2437.909
Significance: Intermediate liquidity zone crucial for intraday trading decisions.

1-hour TP (Take Profit) Zone:
Level: 2419.054
Significance: Shorter-term take profit area, potentially indicating minor resistance.
Support and Resistance:

Key Support Level: Around 2410.920
Previous Top of Flag: Highlighted zone where price action showed previous resistance before breaking out.

Technical Patterns:

Flag Pattern:
The chart showcases a flag pattern where the price initially showed strong upward momentum (flagpole) followed by a consolidation phase within parallel lines (flag). The breakout from this flag pattern indicates a continuation of the bullish trend.

Upward Channel:
The price is currently moving within an upward channel, suggesting a controlled and steady rise in the price of gold.

Current Price Action:
Price: 2410.920 (at the time of the screenshot)
The price has broken out of the flag pattern and is currently trading near the 4-hour LQZ level.
There's an observed strong bullish momentum as the price approaches the daily LQZ.

Trading Plan:

Bullish Bias:
Given the breakout from the flag pattern and the upward channel, the bias remains bullish.
The price targeting the daily LQZ indicates further potential upside.