We are ready for a new bullish movement on XAUUSD

-Hypothesis: The price is about to start a new bullish movement IF we have the confirmation of the price reaching the green line.

-If the price does not reach the green line, we will not consider our Hypothesis Active.

-Invalidation level: Redline, this means that if the price does not reach our green line, we will consider that the hypothesis is no longer valid / Also, if the price reaches the green line, and then a new local low happens (Redline) we will consider our Hypothesis to be wrong.

-Expected target: 1950,00

-Risk-free level: 1860.00 This means that if the price goes in the expected direction and reaches 1860.00, we will move our stop loss to the entry level.

Possible duration of the movement: 5 to 12 weeks


Technical Explanation: The price is on a convergence zone (Ascending trendline + Key Support level + Cloned channel of the Flag pattern). After a clear rejection on the level (double bottom pattern), we saw a clear breakout of the inner descending trendline. Based on those items, IF we have a new local high, we will consider that a confirmation for the bullish movement.


Thanks for reading!