This is a technical chart for Gold (XAU/USD) on 24th December 2024 showing potential trade setups. Let’s break it down:
Key Observations:
Trendlines:
A descending channel is visible, with price reacting to both the upper and lower boundaries.
The price recently broke above the descending trendline, indicating a potential reversal or breakout.
Zones:
Demand Zone (Support): Highlighted in blue near $2,592.84, showing a strong potential support level.
Supply Zones (Resistance): Highlighted in red and blue near $2,630 - $2,654, indicating potential barriers to upward movement.
Price Movement:
Price recently bounced off the demand zone and is approaching higher resistance zones.
A bullish impulse is expected, as illustrated by the curved arrows, with potential pullbacks.
Patterns and Projections:
There is a potential double-bottom pattern near the demand zone.
The price could retrace slightly before continuing upward toward the highlighted resistance zones.
Entry and Stop-Loss:
Suggested long entry appears near the green arrow (~$2,606).
Stop-loss is likely set below the demand zone (~$2,592.84).
Take-profit levels are near the supply zones, with the primary target around $2,654.
Risk-Reward:
The trade seems to follow a favorable risk-to-reward ratio, with higher potential gains if the price reaches the top supply zone.
Trade Analysis:
Bullish Bias: Based on the breakout from the descending channel and bounce from the support zone.
Entry Zone: Look for confirmation near $2,606 if price retraces slightly.
Targets: $2,630 (first target) and $2,654 (second target).
Stop-Loss: Tight below $2,592 to limit downside risk.
