8/6: Watch for a Potential Double Top FormationGood morning, everyone!
Yesterday, gold experienced its first significant supply pressure around the 3386 level, but with support near 3350—helped by positive data—prices rebounded and climbed back toward 3390, resulting in solid overall gains.
From the 1-day chart (1D) perspective, the technical structure remains bullish, with MA20 providing firm support. Although short-term moving averages are currently converging, the overall bias remains towards a bullish divergence, suggesting further upside potential. There's a possibility for price to test the 3400–3420 zone in today’s session.
That said, the 3386–3398 region may still pose minor selling pressure, although it is not expected to be particularly strong. Key intraday support is seen in the 3378/3372–3362 range. If the market encounters another wave of heavy selling that damages the daily bullish setup, then the 3343–3348 area will become a critical battleground between bulls and bears.
📌 Trading Strategy for Today:
Maintain a sell-on-strength approach, especially if prices approach the 3418–3438 resistance area, where short opportunities become more attractive;
If a pullback occurs, monitor the aforementioned support zones for potential buy-on-dip opportunities, contingent on stability.
⚠️ Market Risk Reminder:
There will be key economic speeches during the US session, which could trigger heightened volatility. Ensure proper risk management and stop-loss settings are in place.
