XAUUSD Bearish Continuation | Descending Channel Rejection 📉
Description:
Gold (XAUUSD) is maintaining a heavily bearish structure on the 5H timeframe, trading cleanly within a well-defined descending channel. After experiencing an aggressive expansion lower, price attempted a corrective pullback to retest the broken structural support, which has now transitioned into a prominent resistance area. Sellers strongly defended this overhead resistance structure alongside the upper channel boundary, printing a clear rejection candle. As long as price remains capped below this resistance zone, the order flow remains firmly bearish, signaling a continuation down toward key historical support zones and internal sell-side liquidity pools.
Key Structural Levels:
🔴 Channel Resistance / Invalidation Zone: 4,260.000 – 4,300.000 (Body close above resistance area)
📉 Current Rejection Level: 4,180.608
🔵 1st Bearish Objective: 4,080.000 (1st Support)
🔵 2nd Bearish Objective: 3,890.000 (2nd Support)
Trading Perspective:
Look for high-probability short execution setups on lower timeframes (M15/M5) inside the current rejection leg to align with the dominant structural trend. A strong 5H candle body close above the structural resistance area and the descending channel trendline will fully invalidate this bearish outlook.
This analysis is based on technical structure and market behavior, not financial advice.
Description:
Gold (XAUUSD) is maintaining a heavily bearish structure on the 5H timeframe, trading cleanly within a well-defined descending channel. After experiencing an aggressive expansion lower, price attempted a corrective pullback to retest the broken structural support, which has now transitioned into a prominent resistance area. Sellers strongly defended this overhead resistance structure alongside the upper channel boundary, printing a clear rejection candle. As long as price remains capped below this resistance zone, the order flow remains firmly bearish, signaling a continuation down toward key historical support zones and internal sell-side liquidity pools.
Key Structural Levels:
🔴 Channel Resistance / Invalidation Zone: 4,260.000 – 4,300.000 (Body close above resistance area)
📉 Current Rejection Level: 4,180.608
🔵 1st Bearish Objective: 4,080.000 (1st Support)
🔵 2nd Bearish Objective: 3,890.000 (2nd Support)
Trading Perspective:
Look for high-probability short execution setups on lower timeframes (M15/M5) inside the current rejection leg to align with the dominant structural trend. A strong 5H candle body close above the structural resistance area and the descending channel trendline will fully invalidate this bearish outlook.
This analysis is based on technical structure and market behavior, not financial advice.
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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.
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.