Gold Creating Liquidity Trap Before Major Reversal

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Gold (XAUUSD) is currently in a broader downtrend, but recent price action on the 15-minute chart suggests a liquidity grab in the form of a fake uptrend structure. The price is forming higher highs and higher lows, but it is still failing to break the key resistance zone between 3340.130 – 3343.433, as marked in the chart.

This zone is a critical supply area, and a strong breakout and retest above this range would indicate a potential shift from bearish to bullish sentiment.

Until that breakout happens, any upward move is likely to be a liquidity trap, aimed at trapping late buyers before resuming the downtrend.

Trade Idea:

Sell zone: Below 3340

Stop loss: Above 3345

Target 1: 3300

Target 2: 3270


Only consider a buy entry after a confirmed break and close above 3345 with a retest.

Penafian

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