š Technical Analysis of the Gold (XAUUSD) Chart
1. Market Structure
- The price previously made a strong bullish move, but it is now forming a descending channel, indicating short-term bearish pressure.
- Multiple rejections from the upper supply zone (highlighted in purple) confirm strong resistance around that level.
2. Key Zones
šµ Supply Zone (Resistance)
- Price attempted to break above the supply zone several times but failed.
- This suggests smart money selling pressure and a potential reversal area.
šµ Demand Zone (Support)
- You marked a small support area below current price.
- If the price breaks this level, a further drop is likely.
3. Trendlines and Patterns
- The previous ascending trendline has been broken, confirming a shift in structure.
- Price is now respecting a bearish descending channel, meaning sellers are controlling the market.
4. Possible Scenarios (based on your arrows)
š½ Scenario 1: Bearish Continuation (Most Likely)
- If price retests the broken support / trendline and gets rejected:
- Expect a continuation down toward the lower blue zone.
- Structure supports this because:
- Lower highs
- Bearish channel
- Supply zone rejection
š¼ Scenario 2: Bullish Pullback
- If price breaks above the descending channel and retests:
- Only then we may see a move back up toward the upper supply zone.
- But this requires a strong bullish breakout, which is not visible yet.
5. Summary
ā Market is currently bearish
ā Price is moving inside a downward channel
ā Expect a drop if support breaks
ā Resistance zone above remains strong
ā Wait for a clear breakout before considering buys
