| Impact of Piercing Bar (Gold/USD 1D Chart) | Analysis of yesterday’s price action and today’s bearish continuation. |
| 1. Price Action & Candlestick Pattern Analysis | - The Piercing Line pattern is a bullish reversal signal that appears after a downtrend.
- However, today’s strong bearish follow-through (big red candle) invalidates the bullish setup.
- This indicates weakness in buyers’ strength and a potential continuation of the downtrend.
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| 2. Volume Spread Analysis (VSA) & Market Sentiment | - Volume change is negative (-5.8%) while the spread increased by 74.95%.
- This suggests a wider price range but with lower participation, indicating weak demand.
- Lower timeframes (1H, 4H, 8H) show weak buying pressure, meaning any bounce may be short-lived.
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| 3. Support & Resistance Zones | - Resistance: 2,956-2,972 (VWAP Upper Band & Liquidity High), which acted as a rejection zone.
- Support: 2,888-2,891 (VWAP & VSA Liquidity Low), key levels to watch for a breakdown.
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| 4. Momentum & Trend Analysis | - Bearish momentum is strong across multiple timeframes (1H, 4H, 8H).
- Price failed to hold above VWAP (2,932), confirming further downside risk.
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| 5. Order Flow & Market Strength | - Negative Delta on footprint charts shows that sellers are dominating order flow.
- Absorption at 2,899-2,900 suggests Smart Money is still distributing, not accumulating.
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| Outlook & Trading Plan | - Bias: Bearish (Short continuation expected)
- Entry: Sell below 2,891 (Breakdown confirmation)
- Stop Loss: 2,920 (Above rejection zone)
- Take Profit 1: 2,863 (Liquidity Low)
- Take Profit 2: 2,850-2,810 (VWAP Lower Band zones)
- Confidence Level: 75%
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| Justification for Trade | - The Piercing Line failed to reverse the trend.
- VWAP breakdown & weak volume structure confirm bearish continuation.
- Momentum remains bearish, with weak demand signals.
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| Conclusion | 👉 Gold remains bearish unless bulls reclaim 2,932-2,956. Short positions favored on breakdown. |
