### **Gold Price Analysis: Daily Time Frame**
Hello Traders, let’s dive into the gold (XAU/USD) price action on the **daily time frame**. Gold has recently made a **new all-time high** at **$2,936**, and we’re now observing a potential pullback for a buy entry.
.png "Gold Price Analysis: Buy Setup at Key Fibonacci Levels – Daily Timeframe") |
| daily timeframe |
#### **Key Observations of gold**
1. **Fibonacci Expansion Rejection:**
- Gold price has rejected the **1.618 Fibonacci expansion level**, signaling a potential pullback.
- This rejection often indicates a temporary pause before the next move.
2. **Buy Zone at 0.618 Fibonacci Retracement:**
- The **0.618 Fibonacci retracement level** (highlighted in yellow on the chart) is a critical support zone.
- This level aligns with a **breaker block**, increasing the likelihood of a bullish reversal.
3. **Birmation:** breaker Block Conf
- The breaker block adds confluence to the setup, suggesting that the market may create its own **buy momentum** from this zone.
### **Trade Strategy**
1. **Wait for Pullback:**
- Allow the price to retrace to the **0.618 Fibonacci level** (yellow zone) for a high-probability buy entry.
2. **Confirmation Signals:**
- Look for bullish price action signals, such as **engulfing candles** or **RSI divergence**, to confirm the reversal.
3. **Price Targets:**
- **Initial Target:** Retest of the recent high at **$2,936**.
- **Extended Target:** Fibonacci extension levels above $2,936 (refer to the chart).
4. **Risk Management:**
- Place a stop-loss **below the breaker block** to protect against a breakdown.
### **Why This Setup Matters**
- **Fibonacci Golden Zone:** The 0.618 level is a well-known area for institutional buying and trend continuation.
- **Breaker Block Confluence:** Adds strength to the setup, increasing the probability of a successful trade.
- **Gold’s Safe-Haven Appeal:** Macroeconomic factors, such as inflation and geopolitical tensions, continue to support gold’s bullish trend.
### **Key Levels to Watch**
- **Support:** 0.618 Fibonacci retracement level (yellow zone).
- **Resistance:** Recent high at **$2,936** and Fibonacci extension levels.
- **Breaker Block:** Acts as a dynamic support zone for potential buy momentum.
Gold’s rejection at the 1.618 Fibonacci expansion level suggests a pullback is imminent. Traders should watch for a buy entry at the **0.618 Fibonacci retracement level** (yellow zone), supported by the breaker block.
This setup offers a high-probability opportunity to capitalize on gold’s bullish momentum. Always use proper risk management and wait for confirmation signals before entering the trade.
Post a Comment