Gold (XAU/USD) is approaching a decisive moment. After defending the 4326 demand zone, buyers have pushed price back toward a descending trendline that has been acting as resistance. The chart now suggests that a breakout could open the door for another bullish leg if buyers maintain momentum.

Trade Logic

The setup is based on three important technical factors:

✅ 1. Strong Demand Zone

• Price previously reacted from the 4326 support area, showing that buyers are still defending this level.

• This increases the probability of another bullish attempt.

✅ 2. Descending Trendline Test

• Gold is now testing a falling trendline that has rejected price multiple times.

• A 5-minute candle closing above the trendline would signal that buyers are taking control.

✅ 3. Bullish Momentum

• Consecutive bullish candles indicate increasing buying pressure.

• A successful breakout could attract additional buyers and trigger momentum toward higher resistance.

Trade Plan

• Entry: After a confirmed candle closes above the descending trendline.

• Stop Loss: Below the recent swing low or below the demand zone for better protection.

• Target 1: 4359

• Risk Management: Aim for at least a 1:2 Risk-to-Reward ratio and avoid entering before breakout confirmation.

Bullish Scenario

If Gold closes above the trendline with strong momentum and holds above it during a retest, buyers may target the 4359 resistance shown on the chart.

Bearish Scenario

If the trendline rejects price again, Gold could revisit the 4326 support zone. A break below that level would weaken the bullish outlook and increase the probability of further downside.