Gold has entered a corrective phase after topping out around the $3,450 region. Price action is steadily pulling back, but it’s now approaching a critical support level near $3,200 — a zone we’ve highlighted in recent updates as a potential area for bullish interest.
From a technical standpoint, the $3,200 level is a confluence zone:
- 0.618 Fibonacci retracement from the recent swing
- VWAP support anchored from the prior impulse move
- This cluster of technical factors strengthens the probability of a reaction here.
The broader context shows gold trading within a high time frame range, oscillating between resistance near $3,450 and support around $3,200. These two boundaries define a clear trading range, where rotations between key levels have been consistently respected.
For the next leg higher to materialize, we need to see signs of accumulation or bullish structure forming on the lower time frames. Without this confirmation, the risk of further downside remains. However, if price can find a foothold here, a rotation back toward resistance is the likely outcome — continuing the established range dynamics.
From a technical standpoint, the $3,200 level is a confluence zone:
- 0.618 Fibonacci retracement from the recent swing
- VWAP support anchored from the prior impulse move
- This cluster of technical factors strengthens the probability of a reaction here.
The broader context shows gold trading within a high time frame range, oscillating between resistance near $3,450 and support around $3,200. These two boundaries define a clear trading range, where rotations between key levels have been consistently respected.
For the next leg higher to materialize, we need to see signs of accumulation or bullish structure forming on the lower time frames. Without this confirmation, the risk of further downside remains. However, if price can find a foothold here, a rotation back toward resistance is the likely outcome — continuing the established range dynamics.
Trade active
Gold is bouncing from the $3,200 support region as expected. This level was identified in advance as a high-probability zone due to the 0.618 Fibonacci retracement and anchored VWAP support from the previous impulse move.The trade is now active. Price is showing signs of strength off support, and if this move continues, the next target is a rotation back toward the $3,450 resistance area.
Risk should be managed below the recent swing low near $3,170 in case the bounce fails.
Trade closed: target reached
The bounce from the support region has played out as expected. Price action has now pushed into the resistance area, completing the planned rotation within the high time frame range.This was a clean reaction off key confluence levels, and the trade has reached its primary target. Profits should now be secured, and the position can be closed.
We’ll continue monitoring for any new setups if price breaks above resistance or pulls back for another opportunity.
Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
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.
Join the Free Trading Group
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
Telegram: t.me/freetradingden 🔥
Unlock Blofin Bonuses
Trade with perks & support the community!
blofin.com/invite/alchemisttrader 🎁
Stay sharp, trade smart.
— Team The Alchemist ⚔️
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.