NO SELLGoldOANDA:XAUUSDx1eshxSince last Friday's low around 3960, Gold has rallied exactly 2,000 pips. Even more impressive, since Tuesday's spike low around 4000, the market has gained roughly 1,600 pips in just two sessions. That is a significant move in a very short period of time. In yesterday's analysis, I explained why I believed the breakout above the descending trendline had shifted control back to the bulls. I also mentioned that the path toward 4200 had become increasingly realistic and that, rather than chasing price, traders should focus on buying pullbacks. The 4100 area was my first support, while 4080 remained my preferred buying zone. The market respected the first level. Gold briefly tested the 4100 area, buyers immediately stepped back in, and the rally extended toward a fresh local high at 4166. So far, everything looks exactly as a healthy bullish trend should. But markets evolve. And good traders evolve with them. Why I'm Becoming More Cautious Despite remaining constructive on Gold, there are a couple of details that deserve attention. The first one is purely based on price action. Personally, I would have preferred to see a deeper correction yesterday before the market pushed toward 4166. Healthy trends need healthy pullbacks. Without them, rallies become increasingly vulnerable to profit-taking and emotional buying. The second observation comes from the lower timeframes. The 1-hour chart is starting to resemble a small Head & Shoulders pattern. No, it is not confirmed. And no, I am not suddenly bearish. But ignoring developing structures simply because they don't fit our bias is one of the quickest ways to become emotionally attached to a trade. There is also a psychological aspect. Only a few days ago, almost everyone was convinced Gold was heading to new yearly lows. Now, after a rally of nearly 2,000 pips, many of those same traders have suddenly become aggressively bullish. Markets have a funny way of making the majority feel comfortable... usually at the wrong time. That alone doesn't make me bearish. It simply makes me more cautious. Trading View Structurally, I still believe buyers have the upper hand. However, with Gold currently trading in the middle of its short-term range, I don't see an attractive trade at current levels. If the price breaks below 4110, the developing Head & Shoulders pattern would become increasingly relevant, opening the door for a deeper correction toward my preferred 4080 support zone. That area is now the key battlefield. If buyers defend 4080 and produce a convincing reversal, I will continue to favor the bullish scenario and still consider 4200 a realistic objective. However, if Gold breaks back below 4080, the picture changes significantly. The entire recovery from last week's lows would start looking more like a dead cat bounce than the beginning of a sustainable reversal, putting the yearly lows back into focus. I don't like analyses that say, "if it doesn't go up, it will go down." But I do believe every trader should understand both sides of the market before committing to one. For now, my outlook remains bullish. But for bulls, holding 4080 has become an absolute necessity. 🚀 I am passionate about financial trading. I hope you find my articles helpful, and I invite you to join me in exploring this topic.