Based on the current market structure, Henry sees 3 key zones where Gold could potentially return if a recovery move develops. 1. 4515 – 4540 | Fibonacci 0.5 – 0.618
This is the first recovery target. After the strong decline from above 4600, Gold is currently consolidating around 4420–4470. If price breaks out of this SIDEWAY structure to the upside, Henry expects 4515–4540 to be the first area Gold could revisit.
2. 4580 – 4595 | Strong Reaction Zone
This is the most important zone to watch. It sits near the 0.786 Fibonacci level and represents an area where price reacted strongly before the major decline. If Gold successfully reclaims 4540 and BUY momentum remains strong, 4580–4595 could become the next target. However, Henry will also watch this area closely for a potential SELL reaction.
3. 4620 – 4640 | Supply / Origin of the Decline
This represents a deeper recovery scenario. Gold would first need to break clearly above 4595–4600 before opening the possibility of returning toward 4620–4640. A successful break above this area would begin to seriously challenge the current bearish structure.
Henry’s scenario:
4420–4470 SIDEWAY → 4515–4540 → 4580–4595 → 4620–4640.
But remember, my loves Gold doesn’t have to move through all three zones immediately. At each level, we need to watch for BOS/CHOCH and the strength of the price reaction before confirming the next target.
