Lingrid | GOLD Weekly TECHNICAL Analysis. Ready to SOAR to 2500?

XAUUSD surged, moving towards its next key resistance zone at the 2400 level, where it closed above it. This is a significant bullish sign, as it marks the first time in history that the market has closed above this level on the daily timeframe. The market has also formed an inverse head and shoulder pattern, which has played out nicely. According to this pattern, we can calculate a target by measuring the distance from the low point of the head to the neckline. This distance is approximately how far the price is likely to move after breaking through the neckline. As we can see, the neckline has already been broken, and the target is around the next key resistance level at 2450.

In an ideal scenario, I would expect the market to pull back to the broken level, followed by a continuation of the upward trend. If the market rolls back to the support level or previous higher high and then bounces off it, we can look for confirmation of a buying opportunity. We have two potential buying areas at 2400 and 2370. It's crucial to pay attention to the 2430 resistance level, which triggered a massive sell-off. If the market fails to close above this barrier, we may see a retest that could potentially turn into a double top and lead to a bearish move. However, current market conditions are more favorable for rising gold prices due to several factors. Firstly, the current geopolitical situation is favorable for gold. Secondly, the US is printing money, but also has significant budget borrowings, which could lead to higher gold prices. Finally, central banks around the world are actively buying gold, which is a positive sign for the metal's future.


Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻

Trade closed: target reached:

The price hit the target pip by pip.