GOLD LONG

Gold Analysis: Bullish Bias with Key Levels Identified

Our analysis indicates a bullish bias for gold, with the market currently forming a higher-high, higher-low structure. Key observations and setups are as follows:
1. Order Block and Confluence:
• A significant order block is identified at the 2687 region, aligning with the 38.2% Fibonacci retracement level and the trendline of the ascending channel.
• We anticipate prices to dip to the bottom of the channel, sweep below the liquidity zone, and then rebound towards the upper boundary of the channel as volatility increases.
2. Downside Scenario:
• If the channel breaks to the downside, a retest is likely to occur. Upon confirmation of the retest, the next liquidity level is estimated around 2671, which aligns with the broader channel structure.
• Additionally, the 2658 region serves as horizontal support and aligns with a potential stop-loss placement in this scenario. This level represents a critical point for assessing further bearish momentum.
3. Upside Opportunity and Symmetry:
• On the long side, the setup aligns with a symmetrical triangle pattern, indicating the possibility of a retest before resuming the upward trajectory.
• With this setup, our take-profit target is significantly higher, yielding an attractive risk-to-reward ratio of 3.53:1.