On June 22nd, gold continued to decline on Friday, with three consecutive daily bearish candles. I had mentioned earlier that this wave of rebound is mostly just consolidation, not a sign of a shift to strength. A shift to strength occurs in four stages—do you remember? Sure enough, it still fell. Everyone must follow the trend when trading; don’t switch between long and short positions. If you’re bearish, only go short. Don’t try to catch the bottom with longs. Once the bottom is broken, just short the rebound.

So, how should we view gold today? Continue mainly with short positions. Resistance levels are 4179-4182, which is the high point of Friday’s rebound, the top of the large bearish candle on the hourly chart, and the 0.382 retracement of the decline from 4276 to 4122. If the decline continues, use the 0.382 level, targeting 4140-4120. If it breaks below, hold at 4060-4050. Ultimately, it’s either going to break below 4000 or head toward the 3900-3800 zone mentioned on June 12. Everyone just needs to remember: if it breaks the bottom early in the morning, short during the European session; if it breaks the bottom during the European session, short during the US session. Use the 0.382 level, the top of the large bearish candle on the hourly chart, or key continuation decline levels as reference.