(XAU/USD) Forming a Bearish Reversal–Key Short Setup Unfolding!

Chart Pattern: Head and Shoulders Formation
The chart shows a potential Head and Shoulders pattern, which is a bearish reversal setup. The head is the highest peak, while the two shoulders form lower highs on both sides. The price has already broken below the neckline, indicating a sell opportunity.

Key Levels:
Resistance Levels:

$3,055.29 – Major resistance
$3,046.10 – Key level near recent highs
$3,030.58 – Short-term resistance where price is currently retesting
Support Levels (Potential Targets):

$2,981.18 – First support level
$2,939.81 - $2,931.99 – Strong demand zone
$2,881.49 – Major support level
Trade Setup:
Entry:

The price has broken below the neckline and is currently retesting the breakdown zone (~$3,030.58).
If the retest holds, it confirms a sell entry opportunity.
Target:

First target near $2,981.18
Second target around $2,939.81 - $2,931.99
Final target at $2,881.49 for a deeper correction
Stop-Loss:

A stop-loss above $3,046.10 to minimize risk
Market Sentiment:
The break below the neckline and a possible rejection at the retest area suggest further downside potential.
If buyers push the price above $3,046.10, the bearish outlook would be invalidated.
This setup presents a high-probability short trade if confirmation follows through after the retest. Traders should monitor price action around the retest zone before entering a position. 🚨📉