Gold can be Rejected from Channel Resistance

[Antony Bishop]

Hello traders, I want share with you my opinion about Bitcoin. The market context for Gold has been strongly bullish since the price action broke out of a prolonged consolidation range that was based in the 3325 buyer zone. This structural shift initiated a new uptrend, with the price action for XAU having been guided higher within a well-defined upward channel. The asset has shown significant strength, breaking through multiple levels, including the current support level at 3845. Currently, after completing a strong impulsive wave, the price is trading very close to the resistance line of this upward channel, consolidating near the highs. In my mind, this is a logical area for the bullish momentum to pause and for a correction to begin. I expect the price to soon be rejected from this channel's upper boundary and initiate a new corrective swing to the downside. I think a confirmed reversal from this area would validate the short scenario. Therefore, I have placed my TP at the 3845 level, targeting the recent breakout area, which should now act as the first major support.