Gold price is consolidating near $4,285 following an intraday sell-off and eyeing any potential nearby support levels.
Technical data ended the displayed session at $4,284.97 for XAUUSD. At the end of the displayed session, TradingView had XAUUSD trading at $4,284.97. Gold had rallied above $4,300 earlier in the day, but sellers pushed the price down into the $4,260 area.
Price has since recovered but hasn’t touched the upper limits of the previous trading day. This puts the market segment between the local support and the $4,300 range.
XAUUSD Recovers After Sharp Intraday Drop
Gold opened the day in the upper $4,270s on the one-minute chart on TradingView.
The morning saw XAUUSD push through $4,290 and briefly into the $4,300 region. The best growth occurred between 10:00 and 11:00.
This was reversed during the afternoon. Gold dropped to nearly $4,260, briefly hitting the $4,260 level, but bounced back. The price then got back to around $4,295 and anchored around that level later in the session.
The Bollinger Band signals indicate reactions from both sides of the band in the very volatile session. There were some lower band signals that were close to local bottoms with subsequent price recovery.
The current Chaikin Money Flow index is at 0.09. The CMF moved into negative territory in the later pullback before turning back positive. Source: TradingView
The latest reading on this chart’s chart page indicates positive money flow, but the price action is below the previous $4,300 reading.
Trade With Azeem Maps Support Near $4,270
Trader Trade with Azeem is calling for a bullish scenario that is based on a deeper support level test.
His XAUUSD chart shows a potential first buy zone around the $4,280 level, with a more robust buying area around $4,270.
There is a horizontal support level around $4255.87. The system has set the stop-loss below that section at about $4,245.42.
The chart above points to several price levels that must be broken before the higher time frame target is broken. Source: Scient Via X
There is a rejection zone forming around $4,310 and resistance forming around $4,345. Liquidity has been improved on the buy-side at the $4,365 level.
The trader’s estimated trend is first seen to dip lower into the increased buying range and then turn back higher.
He has a goal of $4400 at the end of his target. This is not a price objective but rather a trade scenario the analyst has in mind.
That would be the case if he lost the $4,245 area, as his chart would no longer be correct.
Falling Wedge Keeps Another Lower Wick in Play
Analyst Scient also anticipates support to be challenged prior to a larger recovery arising.
The chart depicts XAUUSD consolidating in the vicinity of the value-area high of a previous trading range and forming a falling wedge—as he sees it.
There are a series of short-term lower lows followed by a series of lower highs in the structure after the previous rebound.
Another downside wick may occur as price attempts to move higher on Monday ahead of resumes trading, Scient says. Source: Trade with Azeem Via X
His chart indicates a price recovery from the bottom of the price wedge and a return to the previous price range. That course of action is subject to the continued support of that further dip, however.
Both analyst setups, however, have one common aspect in that they give a second opportunity for a bottoming before a recovery is likely.
For the current market, the signal set by TradingView is $4,280 to $4,285. The next major support zone that can be seen on the charts is the $4,260 to $4,270 zone.
The first nearby level to recover is above price, at $4,300. Breaking above would bring focus back to the resistance levels plotted at $4,310 and $4,345.
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