Bulls Held Their Ground, But Will the Ground Hold Them?In the past two days, I've emphasized the importance of the 2480 support zone, suggesting that the price was likely to test this level before potentially reversing.
This prediction played out as expected, with XAU/USD indeed dropping to that specific zone.
However, my bullish outlook has shifted, and here’s why:
Failure to Break 2500:
Most importantly, yesterday the price attempted twice to stay above the 2500 level but failed both times. The second attempt was met with aggressive selling, and that time support zone was hit.
Signs of Distribution:
Over the past three weeks, price action has been sluggish, resembling a distribution phase rather than accumulation. The lack of momentum in making a new all-time high is concerning.
On the daily chart, while there is a Pin Bar that typically signals a reversal, it's of poor quality—featuring a red body and a large upper shadow ("nose").
In conclusion, I am now looking to sell above 2500, but I plan to keep a tight stop.
Best of Luck!
Mihai Iacob
