Gold has been on a strong bullish run, but we might be gearing up for a major correction! Here's what I'm watching closely on the 1H chart:
Key Analysis:
1. Rejection at Major Supply Zone
Price is stalling around $3,224 - $3,230, a visible supply zone where we’re already seeing bearish signs. Multiple wicks and consolidation at resistance hint at weakening bullish momentum.
2. Bearish Divergence + Sideways Price Action
Momentum is slowing. We’re seeing a bearish divergence form on lower timeframes, which is often a precursor to a pullback. Price action is going sideways right under resistance – classic sign of distribution.
3. Clean Imbalance & Demand Zone Below
The gap between $3,128 and $2,990 is ripe for a liquidity sweep. A break below $3,218 could accelerate the selloff.
Target 1: $3,128 – former breakout zone
Target 2: $2,990 – strong demand with visible buyer interest
Final TP: $2,950s zone for max risk-reward
Trade Plan (Short Bias):
Entry: Break and retest below $3,218
SL: Above $3,230 supply zone
TP1: $3,128
TP2: $2,990
TP3 (Optional): $2,950 for extended move
Risk/Reward: Great R:R setup with confirmation from structure, supply/demand, and price action.
What to Watch:
Watch for high volume on breakdown
London or NY session entry confirmation
Avoid FOMO if price consolidates longer at the top
Let me know your bias in the comments. Are we due for a pullback or will the bulls break out again?
Follow for more clean setups like this!
Key Analysis:
1. Rejection at Major Supply Zone
Price is stalling around $3,224 - $3,230, a visible supply zone where we’re already seeing bearish signs. Multiple wicks and consolidation at resistance hint at weakening bullish momentum.
2. Bearish Divergence + Sideways Price Action
Momentum is slowing. We’re seeing a bearish divergence form on lower timeframes, which is often a precursor to a pullback. Price action is going sideways right under resistance – classic sign of distribution.
3. Clean Imbalance & Demand Zone Below
The gap between $3,128 and $2,990 is ripe for a liquidity sweep. A break below $3,218 could accelerate the selloff.
Target 1: $3,128 – former breakout zone
Target 2: $2,990 – strong demand with visible buyer interest
Final TP: $2,950s zone for max risk-reward
Trade Plan (Short Bias):
Entry: Break and retest below $3,218
SL: Above $3,230 supply zone
TP1: $3,128
TP2: $2,990
TP3 (Optional): $2,950 for extended move
Risk/Reward: Great R:R setup with confirmation from structure, supply/demand, and price action.
What to Watch:
Watch for high volume on breakdown
London or NY session entry confirmation
Avoid FOMO if price consolidates longer at the top
Let me know your bias in the comments. Are we due for a pullback or will the bulls break out again?
Follow for more clean setups like this!
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✅JOIN FREE SIGNALS t.me/frankfxforextrade
✅FOR VIP DM: t.me/frankfx22
✅ Dbot dbot.frankfxx.com
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ DERIV frankfxx.com/deriv
✅FOR VIP DM: t.me/frankfx22
✅ Dbot dbot.frankfxx.com
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ DERIV frankfxx.com/deriv
Related publications
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.