🔺Gold’s latest bounce has run into resistance, and the recovery is starting to lose momentum. On the shared 8-hour chart, price is near 4,396.82, sitting beneath the marked selling zone after failing to hold its recent advance.
My reading remains bearish: buyers produced a rebound, but they have not repaired the structure damaged during the previous decline.
Why the rebound matters
🔺After falling from the August highs, gold recovered towards 4,480–4,515, where the chart highlights the first probable selling zone. That recovery was rejected, leaving a lower high.
🔺This follows the earlier bearish change of character (CHoCH) and breaks of structure (BOS). Put simply, the market has moved from breaking highs to losing support, with rallies now struggling below previous peaks.
🔺The closer area to watch is approximately 4,420–4,455, marked “strong sellers presence.” Recent candles have struggled around this zone, making it the immediate test for any fresh bounce.
How the downside could develop
🔺A rejection from nearby supply, followed by a break below the recent consolidation lows, would strengthen the continuation setup. For traders considering shorts, that sequence offers clearer evidence than assuming every small bounce will fail.
The downside objectives marked on the chart are:
● 4,283.36 — first target: The recent swing low. Buyers previously responded here, so another reaction is possible.
● 4,106.85 — second target: An extended objective if price breaks the first target and then struggles to reclaim it.
The second level depends on the first giving way; it should not be treated as an uninterrupted path lower.
What would change the view?
🔺A sustained recovery above nearby supply would weaken the immediate bearish case. For this interpretation, an 8-hour close above the recent rebound high around 4,515 would invalidate the lower-high setup being followed.
🔺The practical focus is on how price behaves at resistance. A failed retest could support another decline, while a convincing reclaim would be a reason to reassess. Keep the stop-loss and position size defined before entering.
LIKE AND COMMENT ❤️🇬🇧
THE SETUPSFX_ TEAM❤️🇬🇧
My reading remains bearish: buyers produced a rebound, but they have not repaired the structure damaged during the previous decline.
Why the rebound matters
🔺After falling from the August highs, gold recovered towards 4,480–4,515, where the chart highlights the first probable selling zone. That recovery was rejected, leaving a lower high.
🔺This follows the earlier bearish change of character (CHoCH) and breaks of structure (BOS). Put simply, the market has moved from breaking highs to losing support, with rallies now struggling below previous peaks.
🔺The closer area to watch is approximately 4,420–4,455, marked “strong sellers presence.” Recent candles have struggled around this zone, making it the immediate test for any fresh bounce.
How the downside could develop
🔺A rejection from nearby supply, followed by a break below the recent consolidation lows, would strengthen the continuation setup. For traders considering shorts, that sequence offers clearer evidence than assuming every small bounce will fail.
The downside objectives marked on the chart are:
● 4,283.36 — first target: The recent swing low. Buyers previously responded here, so another reaction is possible.
● 4,106.85 — second target: An extended objective if price breaks the first target and then struggles to reclaim it.
The second level depends on the first giving way; it should not be treated as an uninterrupted path lower.
What would change the view?
🔺A sustained recovery above nearby supply would weaken the immediate bearish case. For this interpretation, an 8-hour close above the recent rebound high around 4,515 would invalidate the lower-high setup being followed.
🔺The practical focus is on how price behaves at resistance. A failed retest could support another decline, while a convincing reclaim would be a reason to reassess. Keep the stop-loss and position size defined before entering.
LIKE AND COMMENT ❤️🇬🇧
THE SETUPSFX_ TEAM❤️🇬🇧
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Looking for intraday signals on Forex and XAUUSD (GOLD) with 98% Win Rate In Gold And 83% Win Rate In Forex!
Forex Bot: t.me/SetupsfxFOREX_Bot
Gold Bot: t.me/SetupsfxGOLD_Bot
Forex Bot: t.me/SetupsfxFOREX_Bot
Gold Bot: t.me/SetupsfxGOLD_Bot
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.