XAUUSD Double Bull Flag — Danger AheadHello my dear traders, Laura here.
This week, the market has been extremely tense, and the price action reflects it well.
As I mentioned before, we are currently seeing the formation of a large bull flag. Just above it, a smaller flag is developing, and this smaller structure is the key trigger for any potential continuation. The bullish outlook remains valid only if this smaller flag breaks cleanly.
The recent pullback dipped deeper than expected, which signals hesitation from buyers. When confidence fades, even a promising breakout can turn into a sweet trap that lifts briefly before falling sharply.
Because of this, patience becomes essential. Before entering, we need a clear and decisive breakout that confirms strength. Specifically, we should look for a candle that breaks through resistance with firmness and clarity. If such a confirmation appears, the path toward the 4,300 level becomes structurally supported.
On the other hand, if the price falls below the lower trendline, the bullish scenario is invalidated immediately. At that point, the setup no longer holds and should not be traded.
For now, the principle is straightforward.
No breakout means no entry. Stay disciplined and avoid letting the market pull you into unnecessary risk.
