Precise Demand Zone Analysis and Reversal Trade Setup
This chart illustrates a demand zone analysis on the XAU/USD (Gold) market, showcasing a strong reversal pattern after price tested a key demand zone (highlighted in purple). The marked zone represents a high-probability area for potential buy opportunities, with the price reacting positively and pushing upward toward a defined target at $2,638.30.
The trade setup includes:
Demand Zone: A previously tested support level between $2,606.47 and $2,611.53. Risk-Reward Profile: A conservative entry around $2,611.53, targeting the $2,638.30 resistance zone while maintaining controlled risk below the demand zone. Market Context: The upward move follows significant price compression, making this setup favorable for short-term buyers aiming to capitalize on momentum.
This technical insight is ideal for traders focused on trend reversals and zone-based trading strategies.
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