XAUUSD Ready to Drop? Triple Confirmation for a Potential Revers

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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!




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