GOLD Analysis (Daily Timeframe)

4 days ago

Gold has been extremely bullish for a while, consistently breaking to the upside and creating higher highs, accompanied by the formation of demand zones that were later mitigated for continuation.

The last significant move was a reaccumulation (Re-acc) phase, which revisited unmitigated demand zones. From there, we saw a bullish reaction. However, due to low year-end volume, Gold hasn't been able to break its previous high. Since then, it has been ranging in the same area.

Key Observations:

Bullish Volume Returning:

• Recently, bullish volume seems to be picking up, signaling the potential start of the next leg upward.

EMA Interaction:

• Previously, the price was "surfing" along the EMAs, demonstrating a strong trend-following behavior.
  
• Currently, the EMAs have tightened significantly, which often signals an impending price expansion—a strong indication that volatility and directional movement may resume soon.
  

Two Scenarios in Play:

• Gold may continue ranging before breaking to the upside.
  
• The current move may sustain and lead to a new high.

Liquidity Trap:

• The reaccumulation created a cloud of liquidity, with many traders now eyeing potential sell opportunities due to:
  - The break to the downside.
  - The formation of equal highs, often misinterpreted as bearish.
  
• This could very well be a Smart Money Trap, fueling a bullish move as liquidity is taken.
  

My Perspective:
I remain optimistic about the bullish scenario, as the overall market context suggests a continuation of the upward trend. This is a critical area to watch, and I will monitor closely for confirmation of the next move.