The downtrend hasn't bottomed out. Will it follow the breakout?

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Gold experienced a breakout on Tuesday, rebounding to a peak near 3345 before retreating under pressure. It fell to 3314 in the US session before stalling, a 41-point drop.

Overall, while the decline isn't significant, key support levels have been broken one after another, suggesting the possibility of continued breakdowns and further downside potential. The 1-hour chart also shows a relatively strong bearish trend. The slight rebound in the early Asian session could well trigger a short-term correction. Support has also shifted down to the 3300 mark, a key resistance level for a top-to-bottom reversal.

At present, the main upward pressure remains near the previous support level of 3325-3330. If the price rebounds near this position today, you can still choose to short and wait. The first target below is 3310. If the resistance in the European session is strong, then it may be necessary to adjust the short selling point. Judging from the current market situation, the bears are in a strong advantage.

Trading strategy:

Short around 3325-3330, stop loss at 3340, profit range 3310-3300.

If you're looking for a safe trade, wait for the price to stabilize above 3330 before implementing a short position strategy.

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