XAU/USD) support level back bullish trend Read The caption

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SMC trading point update



Technical analysis of Gold (XAU/USD) on the 3-hour timeframe, suggesting a long trade idea with a clearly defined support zone and target projection. Here's the detailed breakdown:


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Chart Breakdown (3H - XAU/USD)

1. Support Zone (Yellow Box):

Price reacted strongly to the 3,244–3,300 area, which is identified as a key support level.

This area has historically seen demand and is now acting as a base for potential bullish continuation.


2. Falling Wedge Breakout:

A falling wedge pattern has been broken to the upside, which is typically a bullish reversal signal.

The breakout indicates a shift from the previous bearish momentum into bullish strength.


3. EMA 200 Confirmation:

Price is now above the 200 EMA (3,333.347), supporting a bullish bias.

This can act as dynamic support going forward.


4. RSI Momentum:

RSI at 62.00, indicating growing bullish momentum without being overbought.

The RSI has also broken above a previous local high, confirming strength.


5. Target Projection:

The projected move (blue arrowed box) suggests a potential rally of +105.305 points (3.20%), targeting the 3,394.503 level.

This level aligns with previous price structure and acts as the next major resistance.


6. Anticipated Price Path (Black Zigzag Line):

Price is expected to pull back slightly, retesting the wedge breakout or support zone.

After this retest, a bullish continuation toward the target point is projected.




Mr SMC Trading point
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Summary:

Bias: Bullish

Pattern: Falling wedge breakout + support retest

Entry Zone: Around 3,300–3,320 on a retest

Target: 3,394.503

Invalidation: Strong break and close below 3,244.166

Confirmation: Bullish price action near support + sustained RSI strength


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