Bearish Continuation Setup at 4,220 Resistance | XAUUSD 10/10

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Bearish Continuation Setup at 4,220 Resistance | XAUUSD 10/10GoldOANDA:XAUUSDAdrian_NovaTraderπŸ“Š Market Context Gold closed the latest session around 4,195 after recovering from the 4,070–4,110 liquidity area. The rebound has improved short-term momentum, but price is now approaching a descending trendline and a key resistance area around 4,220–4,230. My main focus for the next session is whether this recovery can break through resistance or becomes a corrective move before bearish continuation. πŸ” H4 Structure The broader structure remains bearish, with previous BOS signals confirming downside pressure. SSL sweeps around 4,110 and 4,070 triggered the latest recovery. A short-term bullish CHoCH formed near 4,170, supporting the current rebound. Price is approaching the descending trendline near 4,220–4,230, where the next structural reaction becomes critical. πŸ“ Main POI: 4,220–4,230 This is the primary decision zone, combining descending trendline resistance with the recent recovery's potential rejection area. 🎯 Primary Trading Plan β€” Bearish Continuation Entry Zone: 4,220–4,228 Stop Loss: 4,245 TP1: 4,165 TP2: 4,120 TP3: 4,070 Confirmation required: Wait for price to test the entry zone, reject it, and form bearish displacement with a lower-timeframe MSS or BOS. The entry is conditional; a touch of resistance alone is insufficient. Expected path: 4,220–4,230 rejection β†’ 4,165 FVG β†’ 4,120 Small OB β†’ 4,070 SSL. Using an illustrative entry at 4,224, the risk to the proposed SL is 21 points. TP1 offers 59 points of potential reward, approximately 1:2.8 risk-to-reward, before costs and slippage. πŸ”„ Alternative Scenario β€” Bullish Breakout If H4 price closes firmly above 4,230 and holds the reclaimed area on a retest, the bearish setup loses validity. In that case, avoid forcing the downside scenario and monitor the next resistance zones: First upside area: 4,280–4,310 OB Extended upside area: 4,365–4,390 OB A brief wick above 4,230 is not enough by itself to confirm a breakout. 🧭 Outlook for October 12 My primary expectation is a test of 4,220–4,230 followed by a possible bearish retracement, provided rejection and lower-timeframe structure confirm the move. The first downside objective is 4,165, followed by 4,120 if bearish momentum expands. The key invalidation is a sustained H4 breakout above 4,230, with 4,245 serving as the proposed trade-level stop. If price opens below the entry zone and never retraces into it, there is no entry under this plan.