Gold: High Probability Setup (Gold)

XAUUSD Technical Analysis Summary

The gold chart on the 4-hour time frame reveals a crucial price range between $2940 and $2945. Above this range, a strong supply zone is identified between $2952 and $2960, where sellers are expected to intervene. Conversely, a strong demand zone with an Imbalance of Fair Value Gap (IFVG) is present between $2920 and $2910, indicating a potential buying opportunity.

Trade Idea
The trade idea is to capitalize on a potential breakout above the strong supply zone. A buy signal will be triggered if the price breaks above $2960 with a strong bullish candle, followed by a retest of the zone. This retest is crucial, as it confirms the breakout and increases the likelihood of a successful trade.

On the other hand, if the price shows rejection at the strong supply zone and begins to move downward, a sell signal will be triggered. This rejection indicates that the sellers are still in control, and the price is likely to move lower.

Trade Setup
The trade setup involves:

- A buy entry above $2960, with a stop loss below $2940 to manage risk.
- A take profit target between $2980 and $3000, where the price is likely to encounter resistance.
- A sell entry on rejection at the strong supply zone, with a stop loss above $2960.
- A take profit target between $2920 and $2910, where the price is likely to find support.

This trade idea offers a high-risk, high-reward opportunity. It's essential to manage risk and adjust the trade setup according to individual risk tolerance.