Gold is showing a recovery from the recent sell-off, but the structure suggests this move may only be a corrective pullback rather than a true reversal.
After the sharp decline, price has formed a short-term bullish leg; however, it is now approaching a key sell zone near 4680–4700, where multiple confluences are present.
Market structure overview
The broader context still reflects a bearish-to-neutral transition.
Price remains below the descending resistance trendline, and the recent upside move lacks strong continuation momentum.
This creates a typical scenario where the market rallies into supply before continuing lower.
Key zones to watch
Sell zone: 4680 – 4700 → strong resistance + trendline confluence
Mid support: 4583 → short-term reaction level
Intraday buy zones: 4553 / 4453 → liquidity-based support
Major downside target: ~4000 → sell-side liquidity
Primary scenario (Bearish continuation)
If gold fails to break and hold above the 4680–4700 resistance zone, we may see a rejection forming at this level.
That rejection would confirm this move as a pullback within a larger bearish structure, opening the path for a continuation lower.
In this case:
First downside reaction may occur around 4583
If broken, price could accelerate toward 4450 zone
Extended move may aim for sell-side liquidity near 4000
Alternative scenario (Invalidation)
If price manages to break above 4700 and hold, this would invalidate the bearish setup and signal a potential shift toward bullish continuation.
However, until that happens, upside should be treated cautiously.
Cecilia’s view
Right now, gold is in a classic corrective phase.
The recovery looks clean, but it lacks the strength needed to confirm a full reversal.
For me, the focus is simple:
Watch how price reacts at 4680–4700
Look for weakness, not strength
Follow the rejection, not the hype
Final thought
Markets often move in waves — and this looks like a pullback before continuation.
Patience here is key.
Let price reach the zone, observe the reaction, and then follow the structure.
After the sharp decline, price has formed a short-term bullish leg; however, it is now approaching a key sell zone near 4680–4700, where multiple confluences are present.
Market structure overview
The broader context still reflects a bearish-to-neutral transition.
Price remains below the descending resistance trendline, and the recent upside move lacks strong continuation momentum.
This creates a typical scenario where the market rallies into supply before continuing lower.
Key zones to watch
Sell zone: 4680 – 4700 → strong resistance + trendline confluence
Mid support: 4583 → short-term reaction level
Intraday buy zones: 4553 / 4453 → liquidity-based support
Major downside target: ~4000 → sell-side liquidity
Primary scenario (Bearish continuation)
If gold fails to break and hold above the 4680–4700 resistance zone, we may see a rejection forming at this level.
That rejection would confirm this move as a pullback within a larger bearish structure, opening the path for a continuation lower.
In this case:
First downside reaction may occur around 4583
If broken, price could accelerate toward 4450 zone
Extended move may aim for sell-side liquidity near 4000
Alternative scenario (Invalidation)
If price manages to break above 4700 and hold, this would invalidate the bearish setup and signal a potential shift toward bullish continuation.
However, until that happens, upside should be treated cautiously.
Cecilia’s view
Right now, gold is in a classic corrective phase.
The recovery looks clean, but it lacks the strength needed to confirm a full reversal.
For me, the focus is simple:
Watch how price reacts at 4680–4700
Look for weakness, not strength
Follow the rejection, not the hype
Final thought
Markets often move in waves — and this looks like a pullback before continuation.
Patience here is key.
Let price reach the zone, observe the reaction, and then follow the structure.
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.