📉 XAUUSD Bearish Continuation Setup – Descending Channel + Wave Structure
Gold is currently trading inside a clearly defined descending channel on the 4H chart. After completing a clean 5-wave corrective move (ABC or WXY style), price recently formed a wick rejection followed by an engulfing bearish candle right at the mid-range resistance zone.
🔍 Key Observations:
Price is respecting the upper boundary of the descending channel, showing repeated failure to break out.
A potential rejection zone has formed, marked by a wick + engulfing candle combo.
RSI shows a lower high, hinting at hidden bearish divergence.
Projected move targets the lower boundary of the channel, around 3248–3100 zone.
📌 Bias: Bearish
🎯 Target: 3248 (initial support zone)
📛 Invalidation: Break and close above the upper channel
Gold is currently trading inside a clearly defined descending channel on the 4H chart. After completing a clean 5-wave corrective move (ABC or WXY style), price recently formed a wick rejection followed by an engulfing bearish candle right at the mid-range resistance zone.
🔍 Key Observations:
Price is respecting the upper boundary of the descending channel, showing repeated failure to break out.
A potential rejection zone has formed, marked by a wick + engulfing candle combo.
RSI shows a lower high, hinting at hidden bearish divergence.
Projected move targets the lower boundary of the channel, around 3248–3100 zone.
📌 Bias: Bearish
🎯 Target: 3248 (initial support zone)
📛 Invalidation: Break and close above the upper channel
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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.