XAU/USD) bearish Trand analysis Read The caption

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SMC trading point update



Technical analysis of (XAU/USD) on a short-term timeframe, incorporating several key tools and concepts:


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Overview of the Analysis

Price Level (Current): Around $3,273.40

EMA 200 (Blue Line): Around $3,337.95 (signaling broader trend)

Resistance Zone (Yellow Box): Between approximately $3,300–$3,320

Support/Target Zone: Around $3,231.11

RSI (Relative Strength Index): At 32.88, which is near oversold territory (below 30)



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Interpretation of Chart Structure

1. Descending Channel:

Price is moving within a downward-sloping channel.

Suggests a bearish trend is in play.



2. Resistance Level (Yellow Box):

Price is expected to retest this area and face resistance.

Confluence of a supply zone and upper trendline, reinforcing its strength.



3. Projected Price Action:

Price may climb back up into the resistance zone.

A rejection is anticipated, leading to another leg down.

The target is around $3,231.11, which matches previous measured moves.



4. Measured Moves (Blue Arrows):

Highlights historical price drops of ~79 points.

Repeating this pattern suggests symmetry and continuation.



5. RSI Indicator:

Currently at 32.88: nearing oversold, but not quite.

No clear bullish divergence, so price could drop further.





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Trade Idea Summary

Bias: Bearish

Entry Zone: Near $3,300–$3,320 (resistance)

Target: Around $3,231.11

Invalidation: If price breaks and holds above $3,337–$3,340 (EMA 200 and channel breakout)



Mr SMC Trading point

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Caution/Considerations

Watch for false breakouts above the resistance zone.

Monitor RSI for potential bullish divergence that could invalidate the downside.

Be cautious around the U.S. economic news event icon, which might cause volatility.



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Disclaimer

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