Mobarok Hossain
April 25, 2024
Spot Gold (XAU/USD) has extended its downward momentum, sweeping liquidity directly into the higher-timeframe demand block between 4,151.23 and 4,164.00. As price tests these extreme support levels, market structure points toward a potential relief retracement back into overhead supply levels.
Technical Breakdown
Demand Zone Test: The aggressive sell-off has driven price into the critical 4,151.23 – 4,164.00 support block, where downside momentum is beginning to stall.
Immediate Resistance (Target 1): The first structural zone to monitor on a corrective bounce sits between 4,243.95 and 4,253.39.
Major Overhead Supply (Target 2): A higher corrective extension opens the path toward the flipped supply area between 4,294.47 and 4,317.23.
Trading Scenarios
1. Relief Rebound (Counter-Trend Setup)
Trigger: Lower-timeframe Market Structure Shift (MSS) or bullish rejection pattern inside 4,151.23 – 4,164.00.
Targets: 4,253.39 (First Take Profit) and 4,294.47 – 4,317.23 (Extended Take Profit).
2. Bearish Continuation
Trigger: A decisive breakdown and sustained close below 4,151.23.
Outlook: Invalidates the immediate relief scenario and signals further downside expansion.
Conclusion Traders should closely monitor the 4,151.23 – 4,164.00 demand zone for signs of buyer absorption. Rejection patterns around this level offer high-reward counter-trend setups targeting 4,253 and 4,294+.
Disclaimer: This analysis is provided strictly for educational purposes and does not constitute financial advice.
