PAX Gold bulls about to get trapped before another strong move to the downside? Price action is currently showing a high-probability bearish setup, supported by both market structure and Dow Theory.
💎#PAX Gold first formed a clear Double Top pattern, followed by a decisive break of market structure. After that breakdown, price created another Lower Low, confirming that sellers remain in control and that the broader short-term structure is still bearish.
💎Right now, price is correcting the latest bearish impulse and has retraced into the 0.78 Fibonacci level. This is an important area because price reacted strongly from it and then formed another Lower Low on the smaller timeframe.
💎That lower-timeframe confirmation shows clear rejection from the retracement zone and further strengthens the probability that the correction is ending.
💎As long as the current bearish structure remains intact, we can expect price to continue moving lower toward the previous low, which is also acting as an important support zone and the most logical downside target for this setup.
💎The bearish scenario will be invalidated if price breaks and closes above the previous swing high, as that would signal that sellers are losing control and the current market structure is changing.
The key here is not to chase the move. The highest-probability trades come from waiting for confirmation, respecting invalidation levels, and allowing the market structure to do the work. Discipline and patience will always outperform emotional execution over the long run.
