Gold Testing Resistance, Compression Structure Set to Break

📊 Market Structure
On the H1 chart, gold is forming a compression structure between the Support 3,944 USD and Resistance 3,989 USD zones.
The recent lows create a series of Higher Lows along the rising trendline – indicating buyers are quietly absorbing supply around the lower region.

However, the 3,989 USD zone remains the central resistance axis, converging with the descending trendline formed from the previous peak (4,028 USD). Each time the price hits this zone, a short-term profit-taking reaction occurs, showing strong defense from sellers.

Below the support zone, the Premium Zone 3,944 USD continues to be the main pivot point – where the price has previously surged strongly in the last two sessions.
If this zone is breached, the short-term bullish structure will be invalidated, opening up the possibility of returning to the Liquidity Zone around 3,921 – 3,892 USD.

Conversely, if the price closes above 3,989 USD, the market will confirm a Bullish Break of Structure (BoS), triggering an extended target towards 4,028 – 4,052 USD.

💎 Key Technical Zones
• Resistance Zone 1: 3,989 USD → main resistance, strong reaction zone.
• Resistance Zone 2: 4,028 – 4,052 USD → upper liquidity target zone.
• Support Zone: 3,944 USD → dynamic support, converging with the rising trendline.
• Liquidity Zone: 3,921 – 3,892 USD → the last zone protecting the bullish structure.

🎯 Trading Scenarios

1️⃣ BUY Scenario – Await Confirmed Breakout:
If the price closes above 3,989 USD and successfully retests:
• Entry: 3,985 – 3,995
• SL: 3,965
• TP1: 4,015
• TP2: 4,028
• TP3: 4,052

2️⃣ SELL Scenario – React at Resistance:
If a reversal candlestick pattern appears at 3,989 USD:
• Entry: 3,985 – 3,990
• SL: 4,000
• TP1: 3,965
• TP2: 3,950
• TP3: 3,944

🧠 Vincent’s View
Gold is in a “compression before breakout” phase, with liquidity concentrated around the 3,989 USD zone.
If this zone is broken, the price could quickly surge to the supply area above 4,028 – 4,052 USD.
If it fails, a price rejection here could pull gold back to the rising trendline at 3,950 USD.

“Compression breeds expansion — let price show which side holds conviction.” ⚜️

⏰ Timeframe: 1H
📅 Updated: 06/11/2025
✍️ Analysis by: Captain Vincent