7/9: Failure to Break Above 3321 May Lead to a Drop Toward 3220

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Good morning, everyone!

Yesterday, gold tested support and attempted a rebound but failed to break through resistance, followed by a second leg down that broke the support zone, invalidating the potential inverse head-and-shoulders pattern and resulting in a drop below the 3300 level.

On the daily (1D) chart, price has now broken below the MA60, signaling a further confirmation of the bearish structure.

However, due to the sharp drop, a double bottom or multi-bottom structure is forming on the 30-minute chart, which may be building momentum for a potential test of the 3321 resistance zone.

📌 Key focus areas:

If 3321 is broken and held, there is room for a short-term rebound to extend;

If 3321 holds as resistance, the current rebound is likely a short-selling opportunity.

Technically speaking, without the support of bullish news, if gold fails to reclaim and sustain above 3321, there is a strong chance of a further move lower—potentially down to 3220, where the weekly MA20 is located. A deeper decline could even test the 3200–3168 support zone.

📉 Therefore, the primary trading bias remains bearish, with sell-on-rebound as the preferred strategy until a stronger bullish signal emerges. Monitor the 3321 zone closely for direction confirmation.

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