Gold (XAUUSD) just hit a key supply zone around $3425 for the third time and failed to break through. This triple rejection in a high-volume supply area suggests strong institutional selling pressure.
Here’s why I’m watching closely:
1. Supply Zone Dominance
The LuxAlgo Supply & Demand indicator shows repeated rejections in the $3400–$3425 range – a classic signal that smart money is offloading positions.
2. Bearish Momentum Building
After each rejection, price retraces with higher volume – a sign of increasing bearish pressure. If price breaks below $3200, expect acceleration towards $2999 and potentially $2626 as highlighted by the next major demand zone.
3. Divergence in Price & Momentum
Recent price highs have not been confirmed by momentum indicators (RSI/MACD divergence). That’s another bearish clue.
Key Levels to Watch:
Supply Zone: $3400–$3425 (Strong Resistance)
Support 1: $3200
Support 2: $2999
Final Demand Zone: $2626
My Trade Plan:
Watching for a clean break and retest of $3200 for potential short entry. Targeting $3000 with SL above $3425.
What do you think? Will Gold break down or surprise us with a bullish breakout? Drop your thoughts and charts below!
#XAUUSD #Gold #Forex #LuxAlgo #SmartMoney #PriceAction #SupplyAndDemand #FrankFx
Here’s why I’m watching closely:
1. Supply Zone Dominance
The LuxAlgo Supply & Demand indicator shows repeated rejections in the $3400–$3425 range – a classic signal that smart money is offloading positions.
2. Bearish Momentum Building
After each rejection, price retraces with higher volume – a sign of increasing bearish pressure. If price breaks below $3200, expect acceleration towards $2999 and potentially $2626 as highlighted by the next major demand zone.
3. Divergence in Price & Momentum
Recent price highs have not been confirmed by momentum indicators (RSI/MACD divergence). That’s another bearish clue.
Key Levels to Watch:
Supply Zone: $3400–$3425 (Strong Resistance)
Support 1: $3200
Support 2: $2999
Final Demand Zone: $2626
My Trade Plan:
Watching for a clean break and retest of $3200 for potential short entry. Targeting $3000 with SL above $3425.
What do you think? Will Gold break down or surprise us with a bullish breakout? Drop your thoughts and charts below!
#XAUUSD #Gold #Forex #LuxAlgo #SmartMoney #PriceAction #SupplyAndDemand #FrankFx
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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.