On June 24, regarding gold, when the market's rhythm aligns with the prevailing trend, there is only one course of action: to follow the trend. Yesterday, it was emphasized that any rebound below 4170 presented a selling opportunity, and after breaking below 4120, a rebound to the 4140 area was again a chance to sell, anticipating a continuation of the bearish decline.
From a technical perspective, gold exhibited weak, slow declines on both Monday and Tuesday. Intermediate rebounds lacked strength and failed to hold, indicating they were merely corrections within the bearish trend. Once these corrections concluded, new lows were established, and the downward movement extended further. Yesterday's rebound high of 4144 during the US session serves as the critical dividing line for today's market strength. Maintaining a bearish outlook is appropriate as long as price remains below this level.
The bearish bias is very clear; the question is merely where to initiate short positions. In a weak market, one should not anticipate significantly higher entry points. Lower prices indicate a stronger trend and a higher probability of new lows being breached. The 4120 level, having been broken, now acts as a resistance-turned-support level (a 'top-to-bottom conversion'). Today's short-term strategy will involve selling around this 4120 conversion area. The current market price has already breached yesterday's low. The market appears precarious with no clear support in sight, suggesting the bearish momentum could accelerate and trigger a sharp decline at any moment. It is recommended to sell gold directly below the 4100 psychological integer support. What may seem like a low price could, in fact, mark just the beginning of the decline.
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