Technical Overview
Gold recently broke out of the previous consolidation zone (3,620 – 3,680 USD) and surged to a new resistance area around 3,780 – 3,790 USD. Following this rally, price has retraced and formed a short-term corrective pattern marked as A-B-C on the chart.
Key Levels
Level 3,720; Short-term intraday support, point A of corrective move
Support Zone 2
Level 3,620; Strong historical support, bottom of prior consolidation
Resistance Zone
Level 3,780 – 3,790; Major swing high, key supply area
Immediate Pivot
Level 3,750 Current market congestion, potential short-term indecision
Price Structure & Behavior
Uptrend Momentum: The red arrow highlights the strong bullish move from 3,640 to 3,780, fueled by buyers breaking the previous consolidation.
Corrective Pattern: After hitting resistance, price retraced to point A (3,720 area) and bounced to point B (~3,755), forming an ABC corrective structure.
Potential Continuation: The chart suggests a possible C leg down toward 3,720 if resistance holds at B, completing the corrective move before the next bullish attempt.
Indicators & Confluence
EMA: Price is currently hovering around the 20 EMA, signaling near-term indecision. Watch for rejection or clean break for confirmation.
RSI: Approaching 60, showing slight bullish bias but not overbought. A downward move would confirm C leg continuation.
Fibonacci: The retracement from 3,640 → 3,780 aligns with 38.2% – 50% Fib retracement for point C (~3,720), supporting this corrective target.
Trading Strategies
1. Aggressive Short (Countertrend)
Entry: Around 3,755 – 3,760 (near point B resistance)
Target: 3,720 (point C)
Stop Loss: Above 3,780
Notes: High probability intraday short, but risk if breakout occurs.
2. Trend Continuation Long
Entry: Break above 3,780 with strong 1H candle close
Target: 3,810 – 3,820
Stop Loss: 3,760
Notes: Only enter if resistance at 3,780 is decisively broken.
3. Range/Scalping
Buy near 3,720 – 3,725
Sell near 3,755 – 3,760
Quick scalps within ABC correction zone, ideal for 1H intraday traders.
Summary
Gold is consolidating after a strong rally, forming a classic ABC correction. The 3,720 support zone and 3,780 resistance zone are critical levels. Traders can look for a short-term C leg drop before continuation, or wait for a break above 3,780 for trend-following long setups.
