Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Gold has just made a strong breakthrough on the H1 hourly chart framework, breaking through the previous expected structure and quickly extending to the 4,780-4,800 area. This suggests buyers are regaining control in the short term.
However, after a move like this, the market rarely rises immediately without rebalancing first. Price may now return to test the old resistance area while closing the nearby fair value gap (FVG) before deciding whether it can continue moving higher towards the overhead resistance.
In other words, the short-term trend is up, but the best opportunity today is not to chase prices at the top of the market.
Our primary focus is on gold’s reaction around the retest zone and the deeper buy zone below.
current trends
Short-term trend: Bullish
Main structure: Breakthrough from compression to expansion
Current status: After breakout, possible pullback/retest before continuing
The overall structure on the chart shows that gold prices have broken through the previous limit range and still maintained upward momentum after the breakthrough. This makes today’s bias toward buying the dip rather than buying the rise.
Major price areas on the chart
1) 4,780.629 – Retest resistance
This was a previous resistance area that has now been broken and may become a major retest area.
If the price pulls back and holds above this area, the breakout will be confirmed to be valid and buyers are still in control.
2) FVG area
The gap between fair value and current price illustrates the imbalance left by impulsive increases.
If the price returns to this area and reacts higher, this will be a strong signal to continue.
3) 4,668.499 – CP Buying Area
This is the most important buying area in the event of a deeper pullback.
If the correction is smaller than expected, this area would serve as a high-quality reaction area as it aligns with structural support and the uptrend line.
4) 4,858.747 – Liquidity Resistance/Upside Target
This is the primary upside liquidity area and primary upside target shown on the chart.
If gold holds the retest area below, this will be the next trend destination.
Main technical reading
This chart highlights three key points:
Prices have broken out of their previous compression structure
The market has left a FVG gap, which increases the likelihood of a rebalancing pullback
The rising trendline still supports a bullish continuation scenario
This means that the market is not weak, but after such a strong breakout, it is normal to return to test new structures.
Day trading scenario
Scenario 1: Price remains at 4,780
If gold prices pull back slightly to 4780 and hold above, the market may continue to rise rapidly.
This means:
Buyers confirm breakout
Retest completed
The upside target remains at 4,858 points
This is the cleanest bullish scenario of the day.
Scenario 2: Price closes the FVG gap and rebounds
If gold prices fall further back into the FVG gap without damaging the structure, this will still be a healthy correction.
If the price reacts well there:
Markets just rebalance after a breakout
The rising structure is still intact
Price may recover above 4,780 and continue towards 4,858
Scenario 3: Price drops to 4668
If profit taking strengthens, gold prices could fall to 4,668.499.
This is a major strategic buying area on the chart.
If price touches this area and shows strong rejection, it may provide a prime entry opportunity to continue the trend.
Scenario 4: Price falls below 4,668
If gold prices decisively fall below 4668, the short-term bullish structure will be significantly weakened.
At this point, the ongoing scenario needs to be re-evaluated, as the breakout may simply be a temporary expansion of liquidity rather than a true extension of the trend.
day trading strategies
Based on the current structure, the best approach is:
Rather buy on pullbacks than chase breakouts
Why:
The short-term trend is upward
The price has broken through strongly
After a breakout, a pullback usually provides better entry opportunities
Things to note when purchasing
4,780 if the price is stable
If the price shows a bullish reaction, the FVG area
4,668 if the pullback is deeper
Improve goals
First: Recover the final mountaintop area
Next page: 4,858
SeeMWFLOW
This kind of chart can easily trigger the fear of missing out (FOMO).
After a strong breakout, most small traders want to buy at the top immediately because they are afraid of missing out on the move.
But experienced traders understand one thing:
The best breakout trades usually occur on retests rather than on more emotional candles.
With the current structure:
Hold 4,780 = continuation of uptrend becomes more credible
Close the FVG gap and rebound = solid setup
Pullback to 4,668 and hold = more quality buying opportunities
in conclusion
Following the breakout, gold showed a clear bullish structure, with an impulsive rally above the previous compression zone confirming its momentum.
Intraday Bias: Bullish Downside
Would rather wait for prices to return to high-quality areas
Observe the reaction of 4,780, FVG gap and 4,668
The main upside target remains 4,858 points
In a market just emerging from compression,
The real advantage is not following the trend – it’s waiting for price to move back into your zone.
