Thursday, June 26th. The view from yesterday was very clear: maintain a short-selling approach below the morning rebound high of $4018. Two short positions during the day session both yielded profits. During the European session, the gold price tested but failed to break below the $3960 low multiple times. After prolonged pressure without breaking support, the US session saw a rebound breaking above $4018, indicating short positions were no longer advisable for the evening, with the next resistance at the mentioned $4050 level.
Following the overnight decline and subsequent rebound breaking above $4018, the price extended to around $4045, encountering resistance below the $4050 level. Many are uncertain about today's direction—whether the rebound will continue or a decline will resume. Both scenarios are possible. However, the broader cyclical downtrend remains unchanged. Operationally, priority should be given to following the trend with short positions. Today, focus on the $4045 level, yesterday's high. During the Asian session, short around the $4045 resistance. A decisive break above $4045 would signal a continuation of the short-term rebound. In that case, one could then look to buy on a pullback, targeting the $4080 area, before considering a short position again below the $4500 psychological barrier.
Today's view: After the overnight surge to around $4045 met resistance, the early Asian session saw a rebound to $4036 before a pullback. Gold currently shows signs of encountering resistance, with the current quote at $4020. It is suggested to short gold above $4020 during the Asian session, with a stop-loss above the early session high of $4036, targeting a 40 to 50-point profit.
Comments