Gold (XAU/USD) Bullish Setup: Rejection from Support with Upside

echnical analysis of (XAU/USD) on the 1-hour timeframe. Here’s the breakdown of the idea illustrated:







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Key Elements:

1. Support Level (Highlighted Zone):

Price has tested this level multiple times (yellow circles), showing strong buying interest.

It acts as a demand zone.



2. CHoCH (Change of Character):

Marked above previous structure — indicates a shift from bearish to bullish structure.

Suggests smart money buying could be active.



3. Price Action:

After the CHoCH, price made a higher high.

It’s now retesting the support level (potential order block or demand zone).



4. EMAs (50 & 200):

Price is trading above both EMAs, suggesting a bullish trend.

The 50 EMA is above the 200 EMA = bullish crossover.



5. Targets:

Target Point 1: 3,392.274 (near the previous high).

Target Point 2: 3,438.555 (next significant resistance level).

Labeled move suggests a potential 3% rally if price holds the support.





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Confirmation Signals:

Strong support zone holding.

Bullish engulfing candles near the support (assumed from price shape).

Moving average alignment and bullish structure.



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Potential Risks:

If price breaks below the support zone, the setup may become invalid.

Watch for false breakouts or liquidity grabs below support.



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Summary:

This is a trend continuation strategy, waiting for a retest of support followed by a move toward higher resistance. If bullish confirmation appears (e.g., strong bullish candles or volume spike), it could be a good entry.



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