As per the recent analysis, the bearish scenario suggests selling positions below 2470 with intraday profit targets at 2463, 2460, and 2456. It is recommended to place a stop loss above 2473 or at least 1% of the account capital. Conversely, the bullish scenario recommends buying positions after a pullback above 2460 with profit targets at 2470, 2480, and 2490 in extension. The stop loss should be below 2450 or at least 1% of the account capital. Traders are advised to apply a trailing stop to maximize gains.
On the daily timeframe, there is a clear price consolidation below the July resistance and current all-time high, forming a bullish cup and handle structure. This indicates a potential continuation of buying pressure in the short term with profit targets at 2500, 2600, and 2609 at 100%. This bullish outlook suggests that XAUUSD may experience further upward movement in the coming sessions.
In terms of supply zones, sellers can target 2473, while buyers can look for entry opportunities at 2455.18, 2428.49, and 2423.80. The price has shown signs of recovery after breaking local resistances at 2460 and 2470, indicating a possible continuation of the macro bullish trend with a target at 2500 intraday. There is also potential for new all-time highs in the short term. The breakout of the previous session’s resistance could trigger a corrective scenario, with targets at 2462, 2460, 2458, and 2456 in extension.
It is essential to consider the Point of Control (POC) level, which is the zone where the highest volume concentration occurred. If a downward move follows this level, it is considered a sell zone and forms a resistance area. On the other hand, if an upward move follows it, it is considered a buy zone, typically located at lows, forming support zones. Understanding the significance of POC can help traders identify potential entry and exit points more effectively.
Based on the current technical analysis, XAUUSD shows bullish momentum with the potential for further upside. Traders should closely monitor key levels and price action to capitalize on trading opportunities in the short term. It is crucial to implement risk management strategies, such as setting stop losses and profit targets, to safeguard capital and optimize returns in volatile market conditions.
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