Gold Spot / U.S. Dollar
Long
Updated

Gold: Bullish Flag Formation Suggests Further Upside Potential

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Hello guys, let's dive into Gold analysis!

Gold is currently forming a bullish flag pattern, a continuation formation that typically follows a strong upward impulse (flagpole). After a sharp rally, the price consolidated within a downward channel, creating the classic flag structure.

🔍 Technical Breakdown:

  • Flagpole: The strong bullish rally in early April marks the beginning of the uptrend.
  • Flag (Channel): Price has corrected in a downward-sloping channel, respecting both upper and lower bounds, creating a textbook flag pattern.
  • Breakout Zone: Price is now testing the upper boundary of the flag. A confirmed breakout above this resistance would signal a continuation of the prior uptrend.


🎯 Price Targets:

  1. First Target: Around $3,445, which aligns with the measured move from the breakout point.
  2. Second Target: Around $3,725, representing full flagpole projection from the breakout zone.


📌 Key Levels to Watch:
Breakout Confirmation: A strong 4H close above the flag’s upper boundary (~$3,260) with volume confirmation would validate the pattern.
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Invalidation: A rejection from the resistance and a fall below the channel may delay the bullish scenario, potentially retesting lower support around $3,090.

📊 Conclusion:
This setup favors bulls, but patience is key. Traders may consider waiting for a clear breakout and retest for safer long entries, aiming for the outlined targets.
Note
The channel is not broken yet!
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