A rebound is a good opportunity to short goldGold rebounds from 3100, but is the bullish momentum truly revived?
I don’t see it that way. Yesterday’s retracement to 3100 has already weakened the strong bullish structure to some extent, with 3150 likely acting as a key resistance level. I believe the current rebound is merely a technical retest of the 3150 zone, reinforcing it as a potential cycle high and paving the way for a double-top formation, which could provide a bearish technical setup for further downside.
Following the initial 3100 test, a second retest of this support level is likely. If gold fails to hold 3100 on the second attempt, a break lower towards 3095-3085 would become increasingly probable.
I will continue to scale into short positions within the 3132-3142 zone, with an initial target of 3120-3110. If gold approaches 3100, I will closely monitor the price action to assess the likelihood of a further breakdown.
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