Hello Traders! 👋
What are your thoughts on Gold?
Gold continues to trade within a well-defined descending channel, with price reacting once again to the upper trendline resistance.
The highlighted supply zone around 4,750–4,850 remains a key resistance area for buyers. This zone also coincides with the 0.5 and 0.786 Fibonacci retracement levels, creating a strong technical confluence that supports the bearish outlook.
Following the recent rejection from resistance, signs of buyer exhaustion and weakening bullish momentum have started to emerge near the upper boundary of the channel. As long as price remains below this zone, the bearish scenario remains valid.
In the short term, price may continue consolidating within this zone to accumulate liquidity before initiating the next bearish leg toward the lower boundary of the channel and the marked downside targets.
However, a confirmed breakout and sustained close above both the descending channel and the supply zone would invalidate this bearish setup.
Feel free to like and share your thoughts in the comments! ❤️