Gold (XAU/USD) – Liquidity Grab Before a Potential Drop?
📉 Bearish Setup Developing
Gold is currently trading around $2,905, consolidating near a key liquidity zone. Based on smart money concepts (SMC), we can anticipate a potential move before a larger bearish reaction.
🔎 Analysis:
✅ Liquidity Grab: If price breaks above the current range, it will likely trigger buy-side liquidity, fueling a short-term rally.
✅ Supply Zone Rejection: The supply zone near $2,950-$2,960 could act as a strong resistance, where institutional selling may occur.
✅ Potential Drop: A strong bearish candle from the supply zone could signal a reversal, targeting the $2,880 - $2,850 range.
📊 Trading Plan:
🔹 Entry: Wait for a rejection or bearish engulfing candle at the supply zone.
🔹 Stop-Loss: Above the supply zone (~$2,965).
🔹 Take-Profit: First target at $2,880, extended target at $2,850.
🔹 Confirmation: A lower timeframe shift in structure (e.g., M15 or H1) can increase confidence in the trade.
💡 Key Tip: Be patient and wait for confirmation—trading against a strong bullish trend without proper signals can be risky!
What do you think? Will Gold reverse from the supply zone, or are the bulls still in control? Drop your thoughts in the comments! 👇
Gold is currently trading around $2,905, consolidating near a key liquidity zone. Based on smart money concepts (SMC), we can anticipate a potential move before a larger bearish reaction.
🔎 Analysis:
✅ Liquidity Grab: If price breaks above the current range, it will likely trigger buy-side liquidity, fueling a short-term rally.
✅ Supply Zone Rejection: The supply zone near $2,950-$2,960 could act as a strong resistance, where institutional selling may occur.
✅ Potential Drop: A strong bearish candle from the supply zone could signal a reversal, targeting the $2,880 - $2,850 range.
📊 Trading Plan:
🔹 Entry: Wait for a rejection or bearish engulfing candle at the supply zone.
🔹 Stop-Loss: Above the supply zone (~$2,965).
🔹 Take-Profit: First target at $2,880, extended target at $2,850.
🔹 Confirmation: A lower timeframe shift in structure (e.g., M15 or H1) can increase confidence in the trade.
💡 Key Tip: Be patient and wait for confirmation—trading against a strong bullish trend without proper signals can be risky!
What do you think? Will Gold reverse from the supply zone, or are the bulls still in control? Drop your thoughts in the comments! 👇
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.