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[QUOTE="Kashi_fx, post: 241653, member: 132320"]
This chart represents the Gold (XAU/USD) price action on the 4-hour timeframe with a bullish channel, but it shows signs of potential selling opportunities. Here’s the explanation in a sell bias:

Key Observations for a Sell Setup:

1. Resistance Zone (Red Box)

The price recently tested the resistance level but struggled to break higher.

This suggests that sellers are active, creating a potential reversal.

2. Bearish Rejection

The chart shows that price is reacting to resistance, hinting at a possible downturn.

If price fails to break above resistance and forms bearish candlestick patterns, it could confirm a sell signal.

3. Channel Structure

The price is trading within an ascending channel (blue zone).

A break below the mid-channel line could indicate a deeper retracement.

4. Support Zone (Blue Box) as a Target

If selling pressure increases, price may drop toward the support zone.

A clean break of the mid-channel would suggest further downside towards the lower boundary of the channel.

Trading Plan for Sell:

Sell Entry: If price shows rejection at resistance or breaks below mid-channel.

Stop Loss (SL): Above the resistance zone (to protect against false breakouts).

Take Profit (TP): Around the support zone or the lower boundary of the channel.

Confirmation Factors for Sell:

Strong bearish rejection candles at resistance.

Break below the mid-channel support.

Increase in selling volume.
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