XAUUSD: Bearish Reload Before the Next Expansion?

May 25

XAUUSD is sitting in an interesting bearish continuation structure.

The major bearish sequence already completed its first downside objective, and price is now consolidating after reaching the local ABC target area. This is exactly where a lot of traders get trapped trying to short too late. For me, the cleaner opportunity is not the low — it is the reload.

The key area I’m watching is the marked WCL / BC premium zone above current price. If price pushes back into that zone and fails, it could become the next bearish reaction point. That would give sellers a much cleaner location to defend, instead of chasing price in the middle of the range.

My bearish idea remains simple:

Price rallies into WCL / BC → fails to reclaim the zone → SMC confirms bearish control → continuation toward the larger ABC target below.

The larger downside target sits around the 4,000–4,150 area, based on the projected ABC target zone. That does not mean price must go there in a straight line. It means this is the next major draw if the bearish structure stays valid.

Invalidation is clear: if price breaks above the marked invalidation level near the prior high, the bearish sequence is no longer clean and the idea needs to be reassessed.

I don’t want to short randomly here. I want price to offer a premium reload, show weakness, then confirm with structure.

The setup is not the drop.
The setup is the failed reload before the drop.

Jun 13

Trade closed: target reached