Bearish Reversal Setup on XAU/USD (SMC Analysis)The chart depicts a potential short (sell) setup after a significant bullish run. The price is currently trading near all-time highs (marked around $5,091 in this simulation/chart) and is showing signs of exhaustion at a structural resistance level.
Key Technical Elements:
• Trend Context: The price has been moving within an ascending channel (the blue diagonal lines). It recently hit a "Weak Swing High," suggesting the upward momentum may be fading.
• Market Structure: * BOS (Break of Structure): Multiple bullish breaks are visible on the way up.
• CHoCH (Change of Character): Several internal shifts in trend are highlighted in orange, indicating local volatility.
• Supply & Demand Zones: * The red box at the top represents a Supply Zone or a bearish Order Block where the "Smart Money" is expected to enter sell positions.
• The green shaded area below represents the Target/Take Profit zone, aiming for a return to previous support levels around $4,975 - $5,000.
• FVG (Fair Value Gaps): The yellow highlighted areas and text labels indicate gaps in price action that the market often returns to "fill" or rebalance.
• Projected Path: The large pink arrow and the black zig-zag lines predict a breakdown from the current consolidation, moving toward the "Strong Swing Low" identified near the $4,900 handle.
