Gold Analysis

XAU/USD – Potential Reversal Zone and Bearish Opportunity

Gold's recent price action on the 1-hour timeframe shows a key formation with multiple swing lows (highlighted in orange), suggesting potential liquidity grabs followed by a bullish retracement. However, the price is now approaching $2,748, which aligns with a significant resistance zone (purple box).

Key Levels and Analysis:

Resistance: $2,748 – This area marks a critical supply zone where selling pressure may increase.

Support Zones:

First support: $2,720

Second support: $2,710 – If the downward move continues, this is the primary target for bears.



Trade Idea:

Sell Entry: Near $2,748 if rejection confirms with bearish candlestick patterns.

Target: $2,710

Risk: A breakout above $2,748 would invalidate the bearish setup.


Risk-to-Reward:

Potential downside: -1.42% (-39 points)

If rejection occurs, we could see a move toward $2,710, offering a nice scalping or intraday trade opportunity.