XAUUSD Watching 4105 Equality Objective for Bullish Reversal Setup
XAUUSD Watching 4105 Equality Objective for Bullish Reversal Setup
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Gold remains in a corrective phase, with price working lower inside the short-term descending structure. The key downside area to monitor is the 4105 equality objective, which aligns closely with the 4510 pivot/VPOC reference from the composite profile. This confluence makes the zone important for assessing whether the correction is nearing exhaustion.
From that area, the preferred setup is to watch for bullish reversal patterns — such as a failed breakdown, bullish engulfing candle, momentum divergence, or reclaim of intraday structure — to engage on the long side.
If a reversal develops from the 4105 region, the first upside objective would be a test of the descending trend-channel resistance near 4400. A break above that level would improve the short-term structure and suggest that a larger recovery may be developing.
However, risk remains if sellers maintain control. A loss of the 3940 swing low would add weight to the idea that the broader monthly corrective sequence is still unfolding. In that scenario, Gold could extend into a deeper correction, with the next major downside target coming in around the 3380s.
Key Levels
Primary downside objective / support: 4105
Confluence: Equality objective + composite profile VPOC / pivot region
Bullish trigger: Reversal pattern from the 4105 zone
First upside objective: 4400 trend-channel resistance
Bearish invalidation / risk level: Loss of 3940 swing low
Deeper corrective target: 3380s
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!