Gold finally broke down from the range we were watching and the move was sharp.
The $4,100–$4,110 area has now turned into an important resistance zone after the breakdown. Price has already swept below the previous range low and reached around $4,000, where we’re seeing a small bounce.
For me, this is where it gets interesting. If Gold gets a relief bounce, I’ll be watching $4,085–$4,110 for a possible rejection. A clean reclaim of $4,110 would weaken the bearish setup.
But if sellers stay in control and $4,000 breaks, I wouldn’t be surprised to see another leg lower.
Right now, the structure still looks bearish.
The $4,100–$4,110 area has now turned into an important resistance zone after the breakdown. Price has already swept below the previous range low and reached around $4,000, where we’re seeing a small bounce.
For me, this is where it gets interesting. If Gold gets a relief bounce, I’ll be watching $4,085–$4,110 for a possible rejection. A clean reclaim of $4,110 would weaken the bearish setup.
But if sellers stay in control and $4,000 breaks, I wouldn’t be surprised to see another leg lower.
Right now, the structure still looks bearish.