Gold June 19: Gold White-Session Market Analysis

Gold saw a strong rebound in the Asian session yesterday, lifting the price to $4,329.92 at a level that lines up perfectly with the 61.8% retracement of the drop from $4,382.46 to $4,218.96. According to wave theory, yesterday’s decline during the European and U.S. sessions is part of a 3-wave downward process, including into this morning’s early trading; the main impulsive down wave has not been completed yet, with the bottoming area around $4,118. This way of labeling the move explains why yesterday’s subsequent continuous selloff kept dragging on without even generating a small rebound wave.

Gold White-Session Market Analysis and Countermeasures
The daily-chart rebound failed, and the market is resuming its fall in search of a bottom. There has been a continuous, hour-by-hour drift lower. Technical indicators have stayed dulled at low levels, which suggests there is a need for a rebound correction. Waiting for a decent rebound, and then entering short positions after a test of the resistance level proves ineffective, is the “politically correct” move.
In the gold white session, the strong overhead suppression zone is around 4210 to 4220. From within this area, scale into short positions, targeting around 4150.
If gold continues to drift lower and fails to produce a strong intraday rebound, you may observe the formation of a top structure on the 15-minute chart and, when an opportunity arises, establish short positions.
When the wall collapses, gold’s short-term downtrend restarts, and it follows the broader trend. Short primarily on rallies, unless there is unusual price action and the trend changes.