- Gold is trading in a phase of deep correction after reaching local highs.
- The price formed a false breakdown of the key support level, which may indicate the liquidation of weak positions before a possible corrective growth.
- The dollar index (DXY) shows growth, which puts additional pressure on gold.
Liquidation and reaction
- There was a longs liquidation after the double top formation, which triggered an impulsive decline.
- The price tested the liquidity zone near $2852 and formed a rebound.
- A return to 0.5 Fibo ($2876.8) is possible, after which big players may sell the price down again.
- The area of interest of market-makers can be seen around $2852.
- Potential zone for selling is $2876-$2890 area (local imbalance).
- Support: $2852 (liquidity zone), $2825 (next support level).
- Resistance: $2876 (0.5 Fibo), $2890-$2900 (key selling zone).
- Key formations: Double top → decline → false breakdown → formation of “W”-shaped structure.
Conclusion
- Short-term: a pullback to $2876 is possible.
- Long-term: if the price does not consolidate above $2876-$2890, the probability of the downside continuation remains high.
- SMC indicates bearish control until there is a break of the structure on the higher timeframe.
- The price formed a false breakdown of the key support level, which may indicate the liquidation of weak positions before a possible corrective growth.
- The dollar index (DXY) shows growth, which puts additional pressure on gold.
Liquidation and reaction
- There was a longs liquidation after the double top formation, which triggered an impulsive decline.
- The price tested the liquidity zone near $2852 and formed a rebound.
- A return to 0.5 Fibo ($2876.8) is possible, after which big players may sell the price down again.
- The area of interest of market-makers can be seen around $2852.
- Potential zone for selling is $2876-$2890 area (local imbalance).
- Support: $2852 (liquidity zone), $2825 (next support level).
- Resistance: $2876 (0.5 Fibo), $2890-$2900 (key selling zone).
- Key formations: Double top → decline → false breakdown → formation of “W”-shaped structure.
Conclusion
- Short-term: a pullback to $2876 is possible.
- Long-term: if the price does not consolidate above $2876-$2890, the probability of the downside continuation remains high.
- SMC indicates bearish control until there is a break of the structure on the higher timeframe.
Trade active
False break of 0.5 fibo pushes the price downward 
❤️ Telegram channel: t.me/AndeWave
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.
❤️ Telegram channel: t.me/AndeWave
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.