"Gold Price Analysis: Testing Key Demand Zones"
By analyzing the #Gold chart in the 4-hour timeframe, we can observe that the recent price action highlights several important structural points based on Smart Money Concepts (SMC):
Demand and Supply Zones: There are two main order blocks (OB):
Decisional Order Block (DEC OB) located near the $2731 zone, which represents a demand area where buyers previously entered. This level may act as a support if the price approaches it again.
Extreme Order Block (EXT OB) positioned around $2712, acting as a deeper support zone in case the DEC OB does not hold.
Current Price Action: The price is currently testing the DEC OB near the $2731 level. A positive reaction from this zone may indicate a potential reversal or consolidation, while a drop below this level could lead to further movement toward the EXT OB at $2712.
Outlook: If the price stabilizes above $2731, it could indicate a bullish continuation, with potential targets set at $2739, $2744, and $2752. On the other hand, if the price breaks below $2731, it may signal a move down to $2712, where we might see a demand reaction.
Demand and Supply Zones: There are two main order blocks (OB):
Decisional Order Block (DEC OB) located near the $2731 zone, which represents a demand area where buyers previously entered. This level may act as a support if the price approaches it again.
Extreme Order Block (EXT OB) positioned around $2712, acting as a deeper support zone in case the DEC OB does not hold.
Current Price Action: The price is currently testing the DEC OB near the $2731 level. A positive reaction from this zone may indicate a potential reversal or consolidation, while a drop below this level could lead to further movement toward the EXT OB at $2712.
Outlook: If the price stabilizes above $2731, it could indicate a bullish continuation, with potential targets set at $2739, $2744, and $2752. On the other hand, if the price breaks below $2731, it may signal a move down to $2712, where we might see a demand reaction.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.