XAUUSD – Rejection From Major Supply, Bearish Continuation Setup
Chart Analysis:
This XAUUSD chart is telling a pretty clean story of range-to-distribution behavior.
Grey zone (top) → Clear supply / resistance area. Price has tapped this zone multiple times historically and is now reacting to it again.
The recent push up into this zone looks corrective, not impulsive — higher lows, but weakening momentum as it approaches resistance.
The curved white arrow highlights a previous drop from the same area, showing this level already caused a strong sell-off before. That adds confidence to the zone.
Current Structure:
Market is making a lower high relative to the major swing high.
Price is stalling right under supply → classic sign of sellers absorbing buys.
No strong bullish breakout candles above the grey zone.
Trade Idea Shown:
Entry: Short from the grey supply zone
Target: Blue support zone below (prior demand + liquidity pool)
Support zone: Strong base where price previously accumulated and bounced hard — logical take-profit area.
Bias:
Bearish while below the grey zone
Expectation: rejection → rotation down → liquidity grab into support
What Would Invalidate This Setup?
Strong bullish close and acceptance above the grey zone
Follow-through volume confirming breakout (not just a wick)
Summary:
This is a textbook sell-from-supply → target-demand setup. The market already showed respect for these levels in the past, and current price action suggests sellers are defending aggressively again.
Short
