"Gold (XAU/USD) 1H Chart: Bullish Reversal Setup with Potential

This is a 1-hour Gold (XAU/USD) chart, showing a potential bullish reversal based on price action and market structure. Below is the analysis:

Key Observations:
Previous Resistance Zone (Red Box on the Left)

The price formed a range-bound consolidation before breaking down.
This zone will act as a major resistance if the price approaches it again.
Support Zone (Bottom Red Line at $2,835 - $2,840)

The price has bounced from this level, indicating buying interest.
This could be a strong demand zone, leading to a potential reversal.
Bullish Setup (Blue Box for Potential Trade Area)

A higher low formation at support suggests the start of an uptrend.
The price could push upwards toward $2,920, followed by $2,950 if momentum sustains.
Projected Price Action (Red Arrows Upward)

The chart suggests an impulse move to the upside, followed by a small pullback before continuing higher.
If the price reclaims the $2,920 resistance, it could rally toward $2,950.
Risk Management:

Entry: Near the support zone at $2,850 with confirmation of bullish momentum.
Stop Loss: Below $2,835 to minimize downside risk.
Take Profit Levels:
Target 1: $2,920 (previous resistance).
Target 2: $2,950 (major resistance).
Conclusion:
Bullish Bias: The price is showing signs of reversal from strong support.
Breakout Confirmation: A successful move above $2,920 could confirm a bullish breakout.
Invalidation: If price drops below $2,835, the bullish setup would be invalidated.