š Chart Analysis (XAUUSD ā Gold)
1. Market Structure
- The chart shows price moving within a range (sideways movement) between a resistance zone on the top (highlighted in red/purple) and a support zone on the bottom (purple box).
- Price recently touched the upper resistance and rejected strongly, creating a bearish move downward.
2. Key Zones
š“ Resistance Zone (Supply)
- The highlighted red area shows strong selling pressure.
- Each time price enters this zone, it produces a reversal.
š£ Support Zone (Demand)
- The lower purple zone has caused multiple bullish reactions.
- Buyers have stepped in from this zone multiple times.
3. Recent Price Action
- Price attempted an upward push but failed at resistance.
- A sell signal appeared right at the rejection point.
- The candle structure suggests a bearish continuation toward the lower support zone.
4. Possible Scenarios (as drawn on the chart)
ā”ļø Bearish Scenario (Most Likely)
- Price breaks below the mid-range zone.
- Moves down toward the lower support zone.
- If the support breaks, price may continue falling (down arrows on the right).
ā”ļø Bullish Scenario
- If price reaches the lower support and shows strong bullish reaction:
- Price can bounce back upward toward the mid-range area again.
5. Risk-Reward (1:2)
- The chart shows a 1:2 RR setup where:
- Entry near the resistance.
- Stop-loss above the resistance line.
- Take-profit near the support zone.
This indicates a good trading setup with beneficial risk-to-reward.
Summary
- The market is range-bound.
- Price is currently bearish after rejecting resistance.
- Expectation: Move down to support.
- Watch for either:
- Bounce upward from support, or
- Break and continue downward.
