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Shorting Opportunities Emerge After Failed Breakout
June 7 (Market Analysis) – Gold’s dramatic rejection from the 3,403 resistance level has created a compelling short setup, with the failed breakout now forming a potential “top-to-bottom” conversion pattern that could see prices test 3,300 support in coming sessions.
Critical Price Levels
| Zone | Price Level | Significance |
|---|---|---|
| Resistance | 3,335-3,340 | Breakdown point conversion |
| Pivot | 3,300 | Daily middle Bollinger Band |
| Support | 3,263-3,280 | April consolidation zone |
Trading Strategy
Short-Term Play
- Entry: 3,335-3,340 zone
- Target: 3,310 initial (1:1 R/R)
- Stop: Above 3,345 (Friday high)
Breakout Scenario
- Confirmation: Close below 3,300
- Extension: 3,263 measured move
- Risk: 1.5% account exposure
Technical Context
- Pattern: Evening star + bearish engulfing on weekly
- Momentum: RSI broke 50 midline to 42
- Volume: 28% above average on breakdown
- MA Alignment: 5-day crossing below 20-day
Fundamental Catalysts
- NFP Aftermath: 187K jobs vs 150K expected
- Yield Response: 10Y UST back above 4.3%
- DXY: 104.50 breakout sustains
Risk Management Parameters
- Maximum position size: 3% portfolio
- Stop adjustment if 3,350 breached
- Partial profit at 3,310 (50%)
- Monday gap risk consideration
Note: This technical setup assumes no weekend geopolitical shocks. Monitor Middle East developments and Fed speakers for potential sentiment shifts.
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