Technical Analysis Overview
On the 4H timeframe, Gold is currently trading within a massive Falling Wedge pattern. After a prolonged corrective phase, the price has reached a crucial liquidity sweep area near the $4,100 – $4,200 zone, identified as a Weak Low.
Key Insights & Market Structure:
Falling Wedge Structure: Price is compressing towards the apex of a macro wedge. These patterns typically precede a volatile breakout to the upside.
Liquidity Hunt: We are currently seeing the price hunt for sell-side liquidity at the bottom of the structure. I am looking for a solid base to form within the blue demand area.
Complex Accumulation: My projection shows a potential “triple bottom” or complex accumulation phase before the real expansion begins. We need a clear CHoCH (Change of Character) above the recent minor highs to confirm the shift.
Primary Targets: * Intermediate: The midline of the wedge and the recent supply zones around $4,700 – $4,800.
Main Objective: The top of the wedge near the Strong High ($5,000 – $5,100) area.
The Trade Plan:
Bias: Neutral/Bullish (Waiting for bottom confirmation).
Execution: Looking for a rejection from the lower wedge boundary followed by bullish price action.
Target (TP): $5,050 psychological level.
Invalidation: A sustained close below the wedge support line would shift the bias to a much deeper correction.
Note: Gold remains sensitive to global macro data. Always align your technical bias with upcoming high-impact economic news.