This is a 3-hour (H3) chart of XAUUSD
Price is currently around 3338.
There was a downtrend channel (marked in pink) that price has broken out of strongly to the upside.
The orange zone around 3350–3360 is acting as a resistance supply zone.
There are two scenarios drawn on the chart with arrows:
One showing a breakout above the orange zone to continue the rally.
One showing a rejection at the orange zone, pulling back to the grey demand zone around 3290–3300, and potentially bouncing again.
Indicator Interpretation
You have a clear bullish impulse breaking the channel, suggesting momentum.
But you’re also approaching a significant resistance (the orange supply area).
The RSI at the bottom looks overbought, suggesting the current push could be exhausted soon.
My take:
✅ Right now, the trend bias is bullish after the breakout.
✅ However, entering a buy at this level (near 3340–3350) might be risky because of the resistance just overhead.
✅ A safer buy would be on a pullback to around 3290–3300 (the grey zone + 0.618 retracement area), if the price shows bullish reversal signals there.
✅ For a sell, you could wait for a clear rejection from the orange supply zone (like a bearish engulfing candle or a lower high) to target the 3290–3300 area.
Summary for trading plan
Buy bias overall because the breakout is strong, but only on pullback confirmation.
Sell scalp might be possible if there is a sharp rejection at 3350–3360, but that would be a counter-trend trade.
Risk Management
If you sell from the orange zone, keep a tight stop above 3360–3370.
If you buy on the pullback, look for confirmation and place stops below 3275.
⚠️ Always remember this is not financial advice, just technical guidance. Trading is risky, and you should use your own risk management and confirm with other factors before deciding.
If you’d like, I can help you set up alerts for a specific breakout or retest on this chart — just let me know!
Price is currently around 3338.
There was a downtrend channel (marked in pink) that price has broken out of strongly to the upside.
The orange zone around 3350–3360 is acting as a resistance supply zone.
There are two scenarios drawn on the chart with arrows:
One showing a breakout above the orange zone to continue the rally.
One showing a rejection at the orange zone, pulling back to the grey demand zone around 3290–3300, and potentially bouncing again.
Indicator Interpretation
You have a clear bullish impulse breaking the channel, suggesting momentum.
But you’re also approaching a significant resistance (the orange supply area).
The RSI at the bottom looks overbought, suggesting the current push could be exhausted soon.
My take:
✅ Right now, the trend bias is bullish after the breakout.
✅ However, entering a buy at this level (near 3340–3350) might be risky because of the resistance just overhead.
✅ A safer buy would be on a pullback to around 3290–3300 (the grey zone + 0.618 retracement area), if the price shows bullish reversal signals there.
✅ For a sell, you could wait for a clear rejection from the orange supply zone (like a bearish engulfing candle or a lower high) to target the 3290–3300 area.
Summary for trading plan
Buy bias overall because the breakout is strong, but only on pullback confirmation.
Sell scalp might be possible if there is a sharp rejection at 3350–3360, but that would be a counter-trend trade.
Risk Management
If you sell from the orange zone, keep a tight stop above 3360–3370.
If you buy on the pullback, look for confirmation and place stops below 3275.
⚠️ Always remember this is not financial advice, just technical guidance. Trading is risky, and you should use your own risk management and confirm with other factors before deciding.
If you’d like, I can help you set up alerts for a specific breakout or retest on this chart — just let me know!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.