Mobarok Hossain
April 25, 2024
Spot Gold (XAU/USD) is trading at a critical technical juncture on the H1 timeframe. Following a sharp V-shaped recovery off local demand, price action is consolidating inside a developing rising wedge structure, establishing clear technical boundaries for both bullish expansion and corrective downside scenarios.
Major Overhead Objective (H4 DT Zone): 4,225.64 — Primary supply target and high-timeframe liquidity pool.
Immediate Breakout Resistance: 4,186.01 — Local structure pivot point.
Lower Liquidity Objective (DB Zone): 4,097.43 — Major structural support and downside target.
Market Structure Shift (MSS Point): Critical baseline for maintaining short-term bullish momentum.
A sustained break and close above local resistance at 4,186.01 validates the continuation of the rising wedge. Under this scenario, order flow favors a push toward the 4,225.64 H4 Double Top (DT) zone, where institutional selling liquidity rests.
Should price fail to clear 4,186.01 and break below the H1 Market Structure Shift (MSS) level, the rising wedge pattern invalidates. A breakdown below this pivot confirms a corrective leg lower toward the major Double Bottom (DB) liquidity pool at 4,097.43.
Volume Spread Analysis (VSA): Look for decreasing volume on upward tests of 4,186.01 to confirm buyer exhaustion, or high-volume absorption on a breakout.
Structure Based Trading (SBT): Wait for clear lower-timeframe Market Structure Shift (MSS) confirmation at key boundary levels before committing exposure.
Risk Management: Maintain strict stop placement beyond the invalidation points of the respective setup.
Disclaimer: This analysis is provided strictly for educational purposes and does not constitute financial or investment advice.
