Gold has made a strong impulsive move higher and is now entering a major supply zone around 4,360–4,380. This area has previously attracted strong selling pressure, making it an important reaction point for the current structure.

The current move looks extended into resistance, so a rejection from the supply zone could lead to profit-taking and a corrective decline. Rather than chasing the short immediately, confirmation through a bearish candle, lower high, or CHOCH would provide a stronger setup.

If sellers gain control, the first downside targets sit around 4,275 and 4,240, followed by the major 4,196 support / previous-resistance zone. A clean break below 4,196 would strengthen the bearish structure and potentially open the way toward deeper support.

The key factor is how price behaves inside the supply zone. A sweep of the recent high followed by a sharp rejection would add strong confirmation to the bearish scenario.

On the other hand, a decisive 4H close above the supply zone followed by a successful retest would invalidate the short setup and favor bullish continuation.

Key Technical Structure
🔴 Supply: 4,360–4,380
📉 Bearish confirmation: Rejection + lower high / CHOCH
🎯 Downside: 4,275 → 4,240 → 4,196
🧱 Major support: 4,196
⚠️ Invalidation: Sustained breakout and hold above supply
📌 Best approach: Wait for confirmation rather than shorting directly into the zone.