On June 8th, following the bearish Non-Farm Payrolls data last Friday, the gold price experienced a sharp breakdown and decline. The market price plunged from around 4475, breaking below 4424 and accelerating its descent to a low near 4310, where it currently hovers. The weakness is evident. After Friday's large bearish close, the strategy for today is to sell on rallies, either by waiting for a bounce to short or by chasing the downtrend. In short, avoid going against the prevailing bearish momentum.
Last week's analysis noted that gold is currently in a weak pattern, with the only question being where to enter short positions, highlighting resistance levels at 4347 and 4472. In early trading today, gold rebounded, encountered resistance near 4353, and then quickly fell to break a new low near the 4300 level before bouncing. This move involved a false breakout above last Friday's final high of 4347 followed by a rapid decline, coupled with a rebound action at the psychologically significant 4300 dollar level. Therefore, today's focus is on the early-session high resistance at 4352. The outlook remains bearish below this level, with a break below 4300 expected to trigger further downside momentum.
To be direct, the weekly analysis indicated that after the market price faces resistance on a rebound, we should continue selling below the initial weekly high. The current strategy is clear: use the early-session high of 4353 as the bearish defense point to sell on strength and anticipate further declines. Avoid attempting counter-trend bounces around the 4300 level. Once 4300 is breached, consider selling on minor rebounds to target an accelerated downtrend.
Comments