Gold Showing Distribution Signs – Is a Bearish Reversal in Play?

Technical Analysis
1. Key Support & Resistance Levels
Short-term Resistance: 3,375–3,380 USD (previous consolidation zone now acting as supply)
Major Support: 3,300 USD (prior breakout base, possible Fibonacci target zone)
Intermediate Support: 3,335 USD (intraday low during the current correction)

2. Structure & Trend
The chart shows a strong bullish impulse on August 2, breaking out of a prolonged consolidation base.
After the breakout, price entered a distribution phase around 3,375 where momentum stalled and volume declined.
A clear breakdown from the distribution zone is now underway, suggesting increased selling pressure and a possible retest of lower demand areas.

3. Price Action Behavior
Price is currently attempting a pullback retest toward the broken structure near 3,370–3,375.
There’s potential for a small head and shoulders pattern, with the neckline near 3,335. A confirmed break below this level could accelerate the move down to 3,300.

4. EMA & RSI Outlook
EMA20 is beginning to turn downward and may soon cross below the EMA50, hinting at a short-term bearish trend shift.
RSI (not shown but worth watching) is likely cooling off from overbought levels, providing space for further downside.

Trading Strategy Ideas:

Sell on pullback to resistance:
Entry zone: 3,370–3,375
Target: 3,335 and 3,300
SL: 3,382

Short-term Buy if RSI oversold + bullish price action: 3,335
Target: 3,370
SL: 3,325

Gold is showing signs of weakness after a sharp rally. The breakdown from the distribution zone indicates a shift in sentiment. If price fails to reclaim 3,375 and confirms below 3,335, the 3,300 support could be the next key destination.
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