- November 6, 2025
- Posted by: EWGFX
- Category: Technical analysis
XAU/USD — SELL SETUP AT 3999–4001 | REJECTION FROM DOWNTREND ZONE
Market Context:
Gold is still respecting the descending trendline structure, showing multiple rejections at the resistance zone near 4000–4005. The recent rally seems corrective within a broader bearish framework. Liquidity has been swept above previous highs, followed by a clear CHoCH back to bearish order flow.
Technical Breakdown:
Structure: BOS confirmed on H1, CHoCH on M30 aligns with bearish continuation.
Key Levels:
Sell Zone: 3999–4001 (previous supply + trendline retest)
Buy Zone: 3939–3937 (retest of demand + equal lows area)
Momentum: RSI is failing to sustain above 50 and showing lower highs — confirming potential weakness.
Bias: Bearish until price closes decisively above 4005.
Trade Idea:
Entry: SELL 3999–4001
Stop Loss: 4007 (≈6 pts above entry)
Take Profit:
TP1: 3950
TP2: 3939
TP3: 3910 (extended target if momentum continues)
Alternative Plan (if pullback deepens):
If price reclaims 4005, wait for liquidity sweep above 4010 and look for bearish confirmation again — otherwise, invalidation of the short bias.
Summary:
Gold remains capped under major resistance. Short positions around 4000 align with both multi-timeframe structure and momentum divergence. Bulls need a strong breakout above 4005 to shift bias back to bullish.