Gold Breaches Trendline: Bullish Continuation Expected

Gold Breaches Trendline: Bullish Continuation Expected

Gold's breach of the trendline indicates potential for higher prices. Here's an actionable breakdown:


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Current Trend Overview

Breakout Confirmed:

The 4-hour candle closing above the trendline confirms a bullish breakout.

This signals buyers are in control, and higher levels are now anticipated.




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Targets to Watch

1. First Target: 2760

Why? Likely a nearby resistance or minor psychological level.

May face slight consolidation or profit-taking here.



2. Second Target: 2790

Why? Represents a stronger resistance or Fibonacci extension area.

Likely to test this level if bullish momentum sustains.



3. Extended Targets (Optional):

Beyond 2790, watch 2810 and 2850 as potential zones, depending on strength.

Stop-Loss Placement

1. Below Trendline:

Conservative traders should place stops just below the broken trendline.



2. Swing Low:

Alternatively, set it below the most recent swing low to allow for volatility.



3. ATR-Based Stop:

Use the Average True Range (ATR) for dynamic stop placement, e.g., 1.5x ATR below the breakout level.





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Risk-Reward Example

Entry: Around breakout level (post-close above trendline).

Stop-Loss: 20-30 points below breakout point or recent swing low.

Targets:

TP1: 2760

TP2: 2790



Risk-Reward Ratio: Maintain at least 1:2 or 1:3. GOLD