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Gold Price Analysis: Buy Setup at Key Fibonacci Levels – Daily Timeframe


### **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.  

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.  

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