XAU/USD: Preparing for a Buy on 15-Minute Chart
Overview:
After observing a consolidation period on the 15-minute chart, XAU/USD is showing promising signs of a bullish breakout. The chart attached highlights a critical break of structure (BOS) along with a forecasted path that suggests a possible uptrend continuation.
The recent price action has breached previous short-term lows, indicating a potential shift in market sentiment from bearish to bullish. This break of structure could be an early signal of smart money positioning before a significant upward movement.
A marked red arrow points to a key structural break, suggesting a potential entry point for a long position. The idea is to initiate a buy once we see a clear break above this resistance, confirmed by increased volume and bullish candle closure.
The purple line indicates a potential upward trajectory for the price following the breakout. The forecast is based on historical price patterns and expected market psychology post-breakout.
Entry: Buy after a confirmed breakout above the current OB with a solid bullish candlestick.
Stop Loss: Just below the most recent low prior to the breakout to mini exposure.
Take Profit: Initial target set at the recent high, with a possibility to extend gains if the upward momentum continues.
This setup provides a compelling opportunity for traders looking to capitalise on a breakout strategy in gold. As always, ensure to manage risk appropriately and adjust your trading plan based on real-time market conditions.
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