
GOLD COULD WIPE OUT THE SELLING BIAS BEFORE THE REAL DROP! 🚨
Everyone thought Gold was finally ready to continue selling after Tuesday's bearish move — but this is exactly where the market can trap the majority. The selling we saw on Tuesday forced many traders to completely flip their bias from bullish to bearish, and now the market is showing the kind of price action that can make those sellers regret their entries. Wednesday's upside move wasn't random — the trap was already being built, and we may now be getting very close to the real move.
Basically, this upside momentum came because a lot of traders had built a bullish bias on Tuesday. However, they kept getting trapped, and during the New York session on Tuesday, we finally saw a strong selling move in the market. Looking at that move, many of the traders who were bullish on Tuesday quickly shifted their bias toward selling. And whenever traders aggressively start selling based on recent price action, the market often takes advantage of that psychology and plays the opposite game to trap them. That is exactly what we saw today.
Right now, I believe many of the traders who were selling throughout the day are confused, and some of them may still be holding onto their selling bias. If we look at the price action, the Tuesday Asian low and the area where the market formed a low around the London session were both around $4,377. From that area, the market is currently showing some resistance.
So, somewhere around here, I believe the market is already making its third or even fourth attempt to push lower. We saw sellers coming in during the Asian session, then they were trapped. After that, we saw another selling move before the London session, and now we are seeing another selling attempt during the pre-New York session. But in my view, this could be the final selling attempt of the day.
I believe we could see the $4,373 high getting broken in the short term. Once that happens, the traders who have been selling throughout the day may start giving up on their positions, thinking that the market is finally going higher. And once the majority of sellers give up and exit their selling positions, that is when I believe we could see the real selling move begin. Basically, the market could first force the sellers to give up by breaking $4,373, and then reverse aggressively to the downside — leaving those sellers with nothing but regret.
However, there is one very important condition I am watching. If the market manages to close below $4,356, then we could see a strong selling move, with the next levels around $4,330, $4,317, and eventually a breakdown toward $4,300. This move could happen within the next few hours or potentially during tomorrow's Asian session.
Now, talking about the downside, as I mentioned earlier, $4,300 has become a very important liquidity area. The market has been sustaining above $4,300 since breaking out of that level last week. Because of this, a lot of traders are currently holding buy positions around $4,300, with their stop losses placed below this area.
And this is exactly where I believe the market makers are looking for liquidity. If enough buyers are positioned around $4,300 with their stop losses underneath, the market has a clear pool of liquidity to target. So, in my view, there is a strong possibility that we could see a proper breakdown toward the downside over the next few hours.
I hope you enjoyed this quick update and, more importantly, understood the psychology behind today's move. There is a lot to learn from the way the market trapped both buyers and sellers.
Good luck, everyone. Make sure you trade with patience and discipline, and if the setup comes, lock in some good profits from Gold. And by the way, what is your current view on Gold? Let me know in the comments. Thank you.