Gold Eyes Breakout from Ascending Channel Toward $3,500

49
📈 Chart Analysis
1. Rising Channel Structure
Gold (XAU/USD) has been trading within an upward-sloping channel, marked by the blue trendlines connecting interior lows and highs, culminating at point C (~$3,497). The latest bounce off the lower channel near “B” reinforces bullish bias – if this trendline holds, another leg higher toward resistance around $3,497–$3,500 is likely.

2. Support & Resistance Confluence
The purple trendline and the dotted horizontal green level (~$3,498) converge near the projected breakout point. This synergy provides a strong pivot zone — a successful breakout would validate targets near channel highs.

3. Harmonic Pattern in Play
The chart displays a bullish harmonic structure (likely a Bat or Gartley formation), with retracement ratios (0.719, 1.627) anchoring reversal areas. These reinforce the bounce at B and the potential move toward point C.

4. Trade Scenarios

Bullish Scenario (primary): A bounce off the trendline triggers a rally to the channel top and resistance zone ($3,497–$3,500).

Bearish Caution: A drop below the trendline invalidates the pattern, potentially bringing prices back to horizontal support around $3,296 or even $3,120, as indicated at point A.

🛠️ Technical & Market Context
Technicals: Daily trend remains bullish as long as price holds above ~$3,340–$3,350, with resistance forming in the $3,380–$3,400 range


Fundamentals: Geopolitical tension (e.g., Middle East conflict) and safe-haven inflows continue to underpin gold — though Citi expects prices to eventually correct toward $3,300–$3,500 mid‑term

.

Sentiment: Some analysts advocate “selling the rallies,” especially into the $3,450–$3,500 zone . But central banks’ ongoing buying and potential Fed rate cuts support a stronger floor

.

✅ Trade Strategy
Scenario Entry Zone Target Stop Loss Placement
Play the Bounce ~$3,350–$3,360 $3,497–$3,500 Below trendline near B zone (~$3,320)
Breakout Trade On momentum above $3,400 $3,497–$3,550 Below breakout (sub-$3,380)
Bearish Trigger Break & close below trendline Back to $3,296 / 3,120 Just above trendline ($3,360)

🔍 Summary
Gold remains in a structurally bullish setup inside an ascending channel. The confluence of harmonic reversal, strong trendline support, and pending fundamental catalysts presents a high-probability opportunity to push toward the $3,500 area—provided the trendline and $3,340–$3,350 support hold. A drop below would invalidate the bullish outlook and favor deeper retracement.

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.