Old Ceiling, New Floor: Break and Retest on Gold
Break and retest explained on a real gold example from 23-28 October 2026: a ceiling that held for three days, the breakout candle, the retest from above, then entry, stop below the zone and the breakout-high target.
Key points
Ceiling (1H, UTC): from Fri 23 Oct to Tue 27 Oct 13:00 no candle closed above $4,050 (highest close $4,045.6); rallies topped at $4,041.4-4,050.2.
Break and retest: the 14:00 candle on 27 Oct closed $22.5 higher at $4,066.3; on 28 Oct price came back to $4,043.2 at 05:00 and $4,040.5 at 07:00, inside the old ceiling zone, and held.
Entry $4,045, stop $4,034 below the zone ($11 risk), target the breakout high $4,084 (about 3.5R). An 18:00 wick reached $4,036.9, $2.90 above the stop; the 19:00 candle hit $4,090.0.
A past example for education, not a signal. Not every retest holds, which is why the stop sits below the zone.
Chart data: COMEX gold futures 1-hour OHLC (UTC), 23-28 Oct 2026. Education only, not a signal.
Read more: Gold Breakout and Retest Strategy for XAUUSD · Gold Support and Resistance Strategy: Trading XAUUSD Levels · XAUUSD Market Structure: Trends, BOS and CHoCH Explained
Transcript
Old ceilings become new floors. Here's the proof on gold.
One-hour chart. For three days, gold could not close above $4,050. Every rally died at the same line.
Tuesday, a $22 candle smashes through. Ceiling broken.
Wednesday, price drops back to the line, and holds. Old ceiling, new floor.
Buy the retest. Entry, $4,045. Stop below the zone, $4,034. Eleven dollars of risk.
Then a scary wick to $4,037. The stop survives by three dollars.
Target, the breakout high. Three and a half to one. The next hour hit $4,090.
Ceiling. Break. Retest. Entry. Stop. Rewatch the break. The ceiling became the floor.
