Hi!
After the breakdown of the ascending trendline, the structure clearly shifted from bullish continuation into a corrective phase. The move above the previous highs turned into a fake breakout, which was followed by consistent lower highs.
Recently, price swept the previous low and formed a strong bullish reaction. The key detail here is the engulfing structure:
This is not random; it’s a liquidity grab + demand reaction, which often leads to a short-term bullish push.
Current Scenario
As long as price holds above the recent demand zone, the bias remains bullish in the short term.
The expected move is a push toward the green supply area around $434.
What happens at $434?
That’s the important part.
This move up is not a confirmed trend reversal, yet it’s more likely a corrective rally inside a broader bearish structure.
At the $430–$435 zone, we should expect:
👉 From there, a potential drop can happen, but:
Short positions require confirmation (rejection, lower high, bearish engulfing, etc.)
Alternative Scenario
If price breaks and holds above $434, then the structure shifts again, and the bearish idea becomes invalid, opening room for continuation higher.
After the breakdown of the ascending trendline, the structure clearly shifted from bullish continuation into a corrective phase. The move above the previous highs turned into a fake breakout, which was followed by consistent lower highs.
Recently, price swept the previous low and formed a strong bullish reaction. The key detail here is the engulfing structure:
- First, the market took liquidity below the last low
- Then printed a strong bullish engulfing candle, confirming buyer presence
This is not random; it’s a liquidity grab + demand reaction, which often leads to a short-term bullish push.
Current Scenario
As long as price holds above the recent demand zone, the bias remains bullish in the short term.
The expected move is a push toward the green supply area around $434.
What happens at $434?
That’s the important part.
This move up is not a confirmed trend reversal, yet it’s more likely a corrective rally inside a broader bearish structure.
At the $430–$435 zone, we should expect:
- Weakening bullish momentum
- Possible rejection
- Or distribution
👉 From there, a potential drop can happen, but:
Short positions require confirmation (rejection, lower high, bearish engulfing, etc.)
Alternative Scenario
If price breaks and holds above $434, then the structure shifts again, and the bearish idea becomes invalid, opening room for continuation higher.
Trade active
Telegram channel: t.me/melikatrader94
Forex channel: t.me/melikatrader94GoldForex
Forex channel: t.me/melikatrader94GoldForex
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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.
Telegram channel: t.me/melikatrader94
Forex channel: t.me/melikatrader94GoldForex
Forex channel: t.me/melikatrader94GoldForex
Related publications
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.