After analyzing the current price action of XAUUSD, it is clear that a bearish scenario may unfold if the price falls below 2470. Traders are advised to consider selling positions with take profit levels set at 2463, 2460, and 2456. It is crucial to set a stop loss above 2473 or, at the very least, 1% of the account capital to manage risk effectively.
On the other hand, a bullish scenario can be considered if the price experiences a pullback above 2460. In this case, traders may look to enter buy positions with profit targets set at 2470, 2480, and 2490. It is essential to set a stop loss below 2450 or, at least, 1% of the account capital to protect against adverse price movements. Traders may also consider applying a trailing stop to maximize profits.
Price Action Analysis: XAUUSD Daily Chart
Taking a closer look at the daily timeframe of XAUUSD, we can observe price consolidation below the July resistance and current all-time high. This has led to the formation of a bullish cup and handle structure, indicating a potential continuation of buying pressure in the short term. Profit targets can be set at 2500, 2600, and 2609, representing a potential increase of 100% from the current levels.
Analyzing the hourly chart of XAUUSD, we can identify key supply and demand zones. Supply zones for potential sell positions are located at 2473, while demand zones for buy positions are found at 2455.18, 2428.49, and 2423.80. The price has shown signs of recovery after breaking local resistances at 2460 and 2470, signaling a potential continuation of the macro bullish trend. Traders can target 2500 in the intraday session, with the possibility of reaching new all-time highs in the short term.
It is important to consider the Uncovered Point of Control (POC) when analyzing price movements. The POC represents the level or zone with the highest volume concentration. A downward move following this level indicates a sell zone and forms a resistance area. Conversely, an upward move after the POC represents a buy zone, often located at lows, forming support zones.
Traders should closely monitor the price levels and scenarios outlined above to make informed trading decisions in the short term. It is essential to conduct thorough technical analysis and risk management to navigate the volatile market conditions effectively.