Gold (XAU/USD) Pullback Into Supply – Bearish Continuation Setup1️⃣ 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+.
Short
