Hello traders! Here's a clear technical breakdown of $XAU based on the current chart structure. Gold previously completed a corrective phase after breaking above a descending resistance line, which marked a shift in market control from sellers to buyers. Following this breakout, price entered a consolidation Range, where the market absorbed supply and built a base before the next impulsive move higher. After leaving the range, XAU accelerated into a strong bullish leg and formed an ascending channel, confirming sustained buying pressure. The breakout above the channel base was decisive, and price continued to print higher highs and higher lows. Recently, gold reached the Supply Zone around 4,500, where selling pressure appeared and caused a short-term rejection. This reaction pushed price back toward the Demand Zone near 4,430, which aligns with the channel support and previous breakout structure.
Currently, price is pulling back in a controlled manner within the bullish channel. The rejection from supply looks corrective rather than impulsive, Suggesting profit-taking instead of trend reversal. Buyers are expected to defend the demand area as long as the channel structure remains intact.
My scenario: as long as XAUholds above the 4,430 Demand Zone, the bullish structure stays valid. A strong reaction from this area Could lead to another push toward the 4,500 Supply Zone, with a potential continuation toward 4,540 if a clean breakout occurs. A decisive breakdown below demand would invalidate the bullish setup and signal a deeper correction. For now, the bias remains bullish while price respects the ascending channel. Manage your risk!
