Gold is currently trading around $3,759 and has entered a corrective phase after a strong bullish move. Based on price action and key support/resistance levels, several important scenarios can be considered for the next move.
Key Support and Resistance Levels
First Support: $3,755 – $3,750 zone, where the price is currently reacting. This level acted as resistance in the past and is now turning into support.
Main Support: $3,725 – $3,712 zone, a strong demand area. If the first support fails, this zone could trigger a strong bullish reaction.
Short-Term Resistance: $3,785 – $3,790 zone, which is the recent top. A breakout above this level would confirm continuation of the uptrend.
Bullish Scenario
If the price holds above $3,750 and forms strong bullish candles, we could expect a move towards $3,790 and potentially above $3,800. This scenario becomes more likely if buying volume increases and strong confirmation candles appear.
Bearish Scenario
If the price breaks and closes below $3,750, a drop towards $3,725 – $3,712 is likely. This is a key support zone for the overall bullish trend. A confirmed break below it could lead to a deeper correction toward levels below $3,700.
Conclusion
At the moment, gold is testing a critical support level. Traders should wait for a clear confirmation before entering a position. Jumping in too early can be risky. The best strategy is to wait for a bullish confirmation at support for a buy setup; otherwise, a deeper correction scenario will likely play out.
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