Gold Faces Key Fibonacci Resistance Is the Bullish Momentum Fadi

Trend Structure: Gold remains in a short-term bullish structure, with a clear series of higher highs and higher lows. However, price action shows signs of hesitation near a critical Fibonacci extension zone.

Key Resistance Zone:
$3,428 – $3,438: This area aligns with the 0.618 Fibonacci extension at 3,428.59 and the 0.0 level at 3,438.56, forming a confluence resistance zone that has started to trigger selling pressure.
Immediate Support Levels:
$3,422.62: The 1.0 Fibonacci extension, serving as the first support on a minor pullback.
$3,408 – $3,410: A potential bounce zone combining short-term trendline support and prior consolidation structure.
Fibonacci & Price Waves: The recent bullish leg from $3,330 to $3,438 has completed a 3.618 extension (noted at $3,330.91 on the purple projection). This increases the probability of a corrective retracement.
EMA & RSI (suggested for confirmation): EMA20 (not shown) should act as a dynamic support. Watch RSI for potential overbought signals or bearish divergence if it crosses above 70.
Trade Setups to Watch: Scenario 1 – Short Setup at Fibonacci Resistance Entry: $3,428 – $3,432, only if price action confirms rejection (e.g., bearish engulfing, pin bar)
Stop Loss: Above $3,438
Take Profit 1: $3,422
Take Profit 2: $3,410 (if trendline breaks)
Scenario 2 – Buy Setup on Pullback Entry: Around $3,408 – $3,410 upon bullish price action confirmation
Stop Loss: Below $3,400
Target: $3,428
Final Thoughts: Gold is approaching a strong resistance zone, and short-term pullback is likely unless bulls break through $3,438 with momentum. Traders should stay patient and wait for confirmation signals before entering. Remember: discipline beats impulse.
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