In the gold market on June 23, yesterday's analysis highlighted the $4220 level as a critical resistance. The strategy was to maintain a short position below this level, anticipating a pullback. During the European session, there was a series of small, consecutive bullish candles, but the price failed to break above the $4220 mark, indicating persistent selling pressure. This ultimately led to a decline in the US session.
During the Asian session yesterday, the price rallied but faced resistance at $4220 before falling back to a low around $4170. In the US session, it encountered resistance again near $4220 and retreated to consolidate around $4170 by the close. Following a drop in the early morning hours, the price extended its decline during today's early Asian session, breaking below the $4170 support level. Therefore, the intraday short-term strategy will focus on using the $4170 level, now acting as a resistance (a role reversal from support), to consider short positions, anticipating a continuation of the bearish momentum.
Simultaneously, pay attention to the early session high of $4198, which serves as the intraday dividing line. As long as the price remains below $4198, the bearish outlook prevails. Strong support lies around the previous low of $4120. A hold above $4120 might present a light long opportunity. However, a decisive break below $4120 would signal a further extension of the downtrend, at which point any minor rebound could be used to initiate new short positions.
Trading Outlook for Today: Consider short positions on any rebound below $4170, targeting a 30-50 point move. If the price breaks below the $4120 support, look for opportunities to short on minor bounces below the $4140 level.
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