Gold is showing signs of weakness after reacting strongly from a 4H Supply Zone around the 3331.72 level. Price tapped into the red supply zone, failed to break above, and is now forming lower highs — suggesting bearish momentum is building.
🔍 Key SMC Observations:
Supply Zone: Price rejected the 3331.72 level, which acted as a clear supply area based on past liquidity grabs and bearish institutional moves.
Change of Character (CHoCH): We saw a CHoCH around July 5th–6th, indicating a shift from bullish to bearish order flow.
Lower High Formation: Price failed to make a new high after tapping supply, showing signs of distribution.
Imbalance + Target Zone: Clean imbalance exists down to 3288.73 and potentially to the green demand zone around 3260–3270.
📍Trade Setup Idea:
Sell Opportunity: If price continues to reject the supply zone, look for bearish confirmation on the lower timeframes (e.g., 1H) to enter.
Target 1 (TP1): 3288.73 (near-term liquidity level)
Target 2 (TP2): 3260–3270 demand zone
Invalidation: A break and close above 3331.72 would invalidate the short-term bearish bias.
🔴 Watch for reaction around 3288.73 – if it holds, expect a possible bounce. If broken, further downside is likely.
🔍 Key SMC Observations:
Supply Zone: Price rejected the 3331.72 level, which acted as a clear supply area based on past liquidity grabs and bearish institutional moves.
Change of Character (CHoCH): We saw a CHoCH around July 5th–6th, indicating a shift from bullish to bearish order flow.
Lower High Formation: Price failed to make a new high after tapping supply, showing signs of distribution.
Imbalance + Target Zone: Clean imbalance exists down to 3288.73 and potentially to the green demand zone around 3260–3270.
📍Trade Setup Idea:
Sell Opportunity: If price continues to reject the supply zone, look for bearish confirmation on the lower timeframes (e.g., 1H) to enter.
Target 1 (TP1): 3288.73 (near-term liquidity level)
Target 2 (TP2): 3260–3270 demand zone
Invalidation: A break and close above 3331.72 would invalidate the short-term bearish bias.
🔴 Watch for reaction around 3288.73 – if it holds, expect a possible bounce. If broken, further downside is likely.
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