$XAU rebound back to the pressure zone nearby shows clear weakness. Selling pressure from above starts to become apparent, and the bulls don’t have much conviction for a counterattack.

$XAU - Empty

Trading framework:
Entry: 4,355 - 4,365
Stop Loss (SL): 4,405
Target 1 (TP1): 4,330
Target 2 (TP2): 4,316
Target 3 (TP3): 4,280

Market analysis:
After price dropped down from near the prior high, the rebound couldn’t even push through the dense area of short-term moving averages. This suggests that overhead resistance is very strong. Currently, although price is still hovering near the lower moving average area, the upward driving momentum is clearly insufficient. As long as the breakout line doesn’t see volume and rally back, this kind of resistance-and-rejection pattern is likely to continue downward with momentum, probing the prior low—and potentially going deeper into the next support/consolidation zone.

Click here to trade 👇