XAUUSD Bullish Reversal from Channel Support | Gold Buy SetupAnalysis Overview:
Gold has been trading inside a clearly defined descending channel (marked by the orange trendlines). After a strong bearish move, price has reached the lower boundary of this channel, which is acting as dynamic support.
Key Technical Details:
Descending Channel Support: XAUUSD has tested the lower trendline multiple times and is currently showing rejection wicks, suggesting potential exhaustion of selling pressure.
Demand Zone: The shaded horizontal area represents a prior consolidation and minor support level that aligns with the channel bottom, adding strong confluence.
Entry: Planned buy entry at the current level near channel support, anticipating a bounce.
Stop Loss: Placed below the recent swing low and outside the channel, to allow room for volatility while protecting against continuation of the downtrend.
Target: The mid-to-upper boundary of the descending channel, aiming for a favorable risk-reward ratio.
Market Context: The higher timeframe trend remains bearish overall, so this is a short-term reversal (counter-trend) setup within the channel structure.
Trade Plan Rationale:
Expecting a corrective move upward within the descending channel as price retests previous supply zones and dynamic resistance. This setup is based on:
Confluence of channel support and demand zone
Multiple rejection wicks showing buyers stepping in
Potential mean reversion towards the channel midpoint
Disclaimer:
This is my personal analysis on XAUUSD and not financial advice. Always do your own research and manage risk carefully.
