(XAU/USD) 3H Chart – Bearish Reversal Setup from Resistance Zon

1. Entry Point (Sell):

Marked at 3,335.03

This is a key resistance level where price is expected to reverse downward.



2. Stop Loss:

Placed above at 3,354.88

This acts as a protection level in case the trade goes against the direction.



3. Take Profit Targets (EA Target Points):

TP1 (Downside): 3,245.65

TP2 (Upside - if Stop Loss is hit): 3,455.76 (in case of reversal or long position)



4. Price Action Observation:

Price is currently around 3,320.56, climbing back toward the entry zone.

The red 50-period moving average (EMA) and blue 200-period MA show convergence, often preceding volatility.





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📉 Bearish Scenario (Main Setup)

Sell Bias is expected from the 3,335 region.

If price respects the resistance zone and breaks down again, the target is 3,245.65, yielding approximately 90-point move.

This is a risk-reward favorable setup, with:

Risk: ~20 points

Reward: ~90 points

RRR ≈ 1:4.5




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⚠️ Bullish Invalidity (Stop Loss Hit)

If the price breaks and closes above 3,354.88, it invalidates the bearish setup.

Then, the market may shift towards targeting 3,455.76 — about 100 points to the upside.



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🔧 Technical Factors Supporting the Setup

Supply zone marked by the purple box around the entry.

Trend previously bearish — recent upward move may just be a retracement.

Confluence with MAs: Price is testing MAs — rejection here would add bearish confirmation.



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✅ Summary of Trade Setup

Element Value

Entry 3,335.03
Stop Loss 3,354.88
Take Profit 3,245.65
Alt Target 3,455.76 (if SL hit)
Risk-Reward ~1:4.5
Bias Bearish (Sell Setup)