XAUUSD Bearish Setup: Retracement Trap Before the Next Sell-Off?
🚨 Gold (XAUUSD) is showing signs of a classic Smart Money retracement trap!
If you're trading gold this week, this is the kind of setup that separates the retail guessers from the Smart Money followers.
📉 The Setup Breakdown (30m Chart):
After a violent sell-off, XAUUSD found temporary support near $3,168, marking a key liquidity zone.
Current price is rebounding, but not randomly — it's heading straight toward the 50% - 61.8% Fibonacci retracement zone, which aligns perfectly with previous imbalance.
📍 Supply Zone (Red Box):
The red area marks a likely Smart Money sell zone — between $3,207 and $3,219.
This zone aligns with the 50% - 61.8% retracement and broken structure area — a classic point for redistribution.
🧠 What Smart Money Might Be Doing:
They're not buying this bounce — they’re setting the trap.
Price is retracing into a premium zone, tempting late buyers, while institutions prepare to re-enter shorts.
📉 Bearish Confluence:
The down-sloping channel supports the current bearish momentum.
Any rejection from the red zone could be the start of another impulsive leg down toward $3,170, then $3,168 and possibly lower.
🎯 Key Target Zones:
TP1: $3,170 — minor liquidity shelf
TP2: $3,168 — Fibonacci 0% level and key support
TP3 (extension): Below $3,160 if structure breaks aggressively
⚠️ Risk Management Strategy:
Entry near $3,207–$3,219
SL just above $3,219 for safety
RR on this play is highly favorable, but only if price respects the supply zone
⚡ Execution Plan:
Wait for bearish signs inside the red zone (engulfing candles, momentum shift)
Avoid early entries — Smart Money often pushes a few pips beyond equilibrium before reversing
Manage trade in segments, partial out at TP1 and trail stop into deeper targets
🧠 Pro Trader Tip:
This is not a breakout play — it’s a liquidity engineering setup.
Smart Money thrives on fake reversals, and this current bounce could be one of them. Watch the supply zone reaction closely.
✅ Comment "GOLD SETUP" if you’re watching this play unfold
✅ Save this analysis to sharpen your Smart Money trading edge
If you're trading gold this week, this is the kind of setup that separates the retail guessers from the Smart Money followers.
📉 The Setup Breakdown (30m Chart):
After a violent sell-off, XAUUSD found temporary support near $3,168, marking a key liquidity zone.
Current price is rebounding, but not randomly — it's heading straight toward the 50% - 61.8% Fibonacci retracement zone, which aligns perfectly with previous imbalance.
📍 Supply Zone (Red Box):
The red area marks a likely Smart Money sell zone — between $3,207 and $3,219.
This zone aligns with the 50% - 61.8% retracement and broken structure area — a classic point for redistribution.
🧠 What Smart Money Might Be Doing:
They're not buying this bounce — they’re setting the trap.
Price is retracing into a premium zone, tempting late buyers, while institutions prepare to re-enter shorts.
📉 Bearish Confluence:
The down-sloping channel supports the current bearish momentum.
Any rejection from the red zone could be the start of another impulsive leg down toward $3,170, then $3,168 and possibly lower.
🎯 Key Target Zones:
TP1: $3,170 — minor liquidity shelf
TP2: $3,168 — Fibonacci 0% level and key support
TP3 (extension): Below $3,160 if structure breaks aggressively
⚠️ Risk Management Strategy:
Entry near $3,207–$3,219
SL just above $3,219 for safety
RR on this play is highly favorable, but only if price respects the supply zone
⚡ Execution Plan:
Wait for bearish signs inside the red zone (engulfing candles, momentum shift)
Avoid early entries — Smart Money often pushes a few pips beyond equilibrium before reversing
Manage trade in segments, partial out at TP1 and trail stop into deeper targets
🧠 Pro Trader Tip:
This is not a breakout play — it’s a liquidity engineering setup.
Smart Money thrives on fake reversals, and this current bounce could be one of them. Watch the supply zone reaction closely.
✅ Comment "GOLD SETUP" if you’re watching this play unfold
✅ Save this analysis to sharpen your Smart Money trading edge
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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.