Gold (XAU/USD) Pullback Into Supply – Bearish Continuation Setup

1️⃣ Market Structure

Clear bullish trend leading into Feb 23–24.

Price created a strong impulsive breakout above consolidation.

A sharp wick rejection near ~5,240–5,250 suggests supply pressure.

Current structure shows a lower high forming intraday, indicating short-term weakness.

2️⃣ Key Zones
🟥 Resistance / Supply Zone:

5,200 – 5,240

Multiple rejections

Previous breakout base

Now acting as supply

🟫 Mid Support / Reaction Zone:

5,150 – 5,165

Intraday demand

Currently being tested

🟩 Major Support Target:

5,030 – 5,050

Strong demand base

Prior consolidation before breakout

Logical liquidity draw

3️⃣ Trade Idea Illustrated (Bearish Bias)

The chart suggests:

Short entry within supply (red box)

Stop above 5,240–5,250

Target toward 5,030 support

This provides:

Good risk-to-reward profile

Retracement into imbalance

Liquidity sweep potential before continuation

📉 Bias Assessment
Short-Term (Intraday): Bearish

Rejection from highs

Weak bounce structure

Lower high formation

Momentum slowing

Medium-Term: Still Bullish

Overall trend remains upward

This could be a healthy pullback before continuation

⚠️ What Invalidates the Bearish Setup?

Strong bullish close above 5,240

Break and hold above recent swing high

High volume continuation breakout

If that happens, next expansion could target 5,280+.