LiamTrading – Gold may fake a move before dropping
Gold is trading around the 375x region and might exhibit a "fake breakout" upwards before adjusting downwards. The price structure on the H4 chart shows:
Strong resistance is located at the 3770–3773 region, coinciding with the 0.786 – 1.0 Fibonacci extension area. This is a confluence zone prone to a downward reaction.
The main trendline remains upward, but the RSI is gradually weakening, indicating that the buying force is not as strong.
Short-term support is at 3710–3713, also the 0.5 – 0.618 fibo zone, suitable for buy scalping orders.
A larger support area is at 3688–3691, where it converges with the trendline bottom and important Fibonacci, considered a sustainable "buy zone."
Trading Plan Reference
Sell: 3770 – 3773, SL 3778, TP 3756 – 3743 – 3725 – 3710
Buy scalping: 3710 – 3713, SL 3705, TP 3725 – 3736 – 3748 – 3760
Buy zone: 3688 – 3691, SL 3684, TP 3699 – 3710 – 3725 – 3736 – 3745 – 3760
In summary, gold may create a false upward move to the resistance zone 3770–3773 before reversing to adjust. Traders should patiently wait for confirmation signals at key price zones to enter optimal orders and manage risks tightly.
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