Gold/USD Wyckoff Distribution Breakdown – Trend Reversal or Buy
Chart Analysis & Trade Setup:
This XAU/USD (Gold/US Dollar) 4H chart illustrates a classic Wyckoff Distribution pattern, signaling a potential trend reversal. After reaching a buying climax, Gold has broken below key support, forming lower lows, which suggests further bearish pressure.
Wyckoff Structure Breakdown:
1️⃣ Resistance Break – The initial bullish breakout created new highs.
2️⃣ Buying Climax (BC) – A strong move up exhausted buyers.
3️⃣ Automatic Rally (AR) – Price retraced but held above previous support.
4️⃣ Resistance Confirmation – Price tested resistance again, forming a double-top pattern.
5️⃣ Spring Formation – A false breakout attempt before distribution.
6️⃣ Lower Low Formation – The price has now broken below major support, signaling potential further downside.
Trade Plan & Key Levels:
✅ Potential Long Entry: If price forms a bullish reversal pattern around 2,880 - 2,885 USD, traders may look for long positions targeting 2,920 - 2,940 USD.
📉 Bearish Continuation: If Gold fails to reclaim 2,900 USD, the next downside target is 2,850 USD.
🎯 Target 1: 2,920 USD (Short-term resistance).
🎯 Target 2: 2,940 USD (Key swing high).
🛑 Stop Loss: Below 2,865 USD to manage risk.
This XAU/USD (Gold/US Dollar) 4H chart illustrates a classic Wyckoff Distribution pattern, signaling a potential trend reversal. After reaching a buying climax, Gold has broken below key support, forming lower lows, which suggests further bearish pressure.
Wyckoff Structure Breakdown:
1️⃣ Resistance Break – The initial bullish breakout created new highs.
2️⃣ Buying Climax (BC) – A strong move up exhausted buyers.
3️⃣ Automatic Rally (AR) – Price retraced but held above previous support.
4️⃣ Resistance Confirmation – Price tested resistance again, forming a double-top pattern.
5️⃣ Spring Formation – A false breakout attempt before distribution.
6️⃣ Lower Low Formation – The price has now broken below major support, signaling potential further downside.
Trade Plan & Key Levels:
✅ Potential Long Entry: If price forms a bullish reversal pattern around 2,880 - 2,885 USD, traders may look for long positions targeting 2,920 - 2,940 USD.
📉 Bearish Continuation: If Gold fails to reclaim 2,900 USD, the next downside target is 2,850 USD.
🎯 Target 1: 2,920 USD (Short-term resistance).
🎯 Target 2: 2,940 USD (Key swing high).
🛑 Stop Loss: Below 2,865 USD to manage risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.