Gold: Trendline Breakout + Bullish Divergence— Rally Ahead?

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Gold: Trendline Breakout + Bullish Divergence— Rally Ahead?GoldOANDA:XAUUSDibraheeemzPresenting another high-probability story. This time for GOLD: After weeks of respecting a descending trendline, Gold has finally broken above it, potentially signaling that the recent /short term corrective phase is coming to an end. What's even more interesting is what happened after the breakout. Instead of immediately running higher, price pulled back to retest the broken trendline, which has now flipped from resistance into support. Right at this confluence, Gold printed a Doji candle, showing indecision from sellers and suggesting buyers are stepping back in. Adding further confidence to the setup, RSI has been forming a clear bullish divergence. While price continued making lows during the correction, momentum was already making higher lows—a classic sign that bearish momentum was fading beneath the surface. Why this setup stands out ✔ Descending trendline breakout ✔ Successful breakout retest ✔ Doji candle at support after the retest ✔ Bullish RSI divergence ✔ Strong horizontal support zone sitting just below current price When multiple technical factors align at the same area, they often create high-probability reversal zones. What I'm watching next The first challenge for bulls lies near 4,160, which has acted as immediate resistance in recent sessions. A decisive breakout above that level could open the door toward the major resistance around 4,380, which remains my primary upside objective for this move. If Gold continues defending the current support zone, I believe this could be the beginning of a much larger bullish leg rather than just another short-term bounce. Invalidation The bullish thesis remains intact as long as Gold holds above the immediate support and the underlying support zone. A decisive daily close back below this area would weaken the bullish structure and suggest that further consolidation may be needed before the next advance. What do you think? Is Gold preparing for its next major rally, or will resistance around 4,160 reject price one more time before the move toward 4,380 begins?