Sharp decline from all-time highs, looking to sell on rebound on resistance and liquidity

Strategy summary
Gold started the week with a sharp sell-off (down about $20 on the day), showing strong profit-taking easing after hitting all-time highs. In the current structure, my focus is to sell on the bounce, using the trendline/resistance area and nearby liquidity pool as execution areas.

1) Technical reading (1 hour – based on your diagram)

All-time highs remain a major psychological ceiling. After reaching all-time highs, pullbacks are common.

Price trades below the buyer’s liquidity range and is typically retested before the next directional move.

Key levels on the chart:

Sell ​​Area: 4494 – 4497 ​​(Main Sell Area on Rebound)

High liquidity: ~4474 (reaction/decision point)

Lower liquidity support: 4441 – 4444 and 4403 – 4406 (areas to watch for reaction)

2) Trading Plan (Liam Method: Select Level)
Scenario A (Priority): Sell on the Rally

✅ Sales area: 4494 – 4497

SL (Guidance): Top Zone (Improvements in Lower Timeframes/Spreads)

TP1:4474

TP2: 4441 – 4444

TP3: 4403 – 4406

Logic: This is an outright resistance area/bounce. Selling when the market reacts is safer than pursuing a short position at the lows.

Scenario B: Buying interaction when liquidity is low (quick trades only)

If the selling leg extends to support, you may consider resuming trades in the short term:

Buy: 4441 – 4444 (quick response zone)

Buy deeper: 4403 – 4406 (more valuable area)
Only buy on shorter timeframes with clear buy signals – don’t try to catch a falling knife.

3) Macro Background (News) – Why Gold Fluctuates

The sharp decline suggests the market is re-pricing risks after a sustained rally.

Tensions are high in U.S.-Israeli relations, with Trump and Netanyahu reportedly clashing over Gaza, Iran and post-war arrangements – and geopolitical risks could lead to rapid liquidity-driven swings.

In trading sessions dominated by headlines, gold typically follows a two-step pattern: Liquidity Sweep → Correction → Trend. This is why I stick to level-based execution and avoid getting greedy in the market.

4) Risk warning

Do not chase short positions during a big red candle.

Pay attention to 4494-4497 in the short term and obtain scale profits at the target price level.

Maximum risk per trade: 1-2%.

What is your strategy this week: sell on the rebound from 4494-4497, or wait to buy on the rebound at 444x/440x?

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