Gold Drops to 3250 – Sell-the-Spike Strategy Still in Play🕰️ What Happened Yesterday
In yesterday’s analysis, I argued that the 3320–3330 zone should act as a strong sell zone, with a target down at the 3250 support.
Gold respected the plan perfectly: it dropped from the 3325 area straight into 3250 during the Asia session, hitting the target with precision(700+ pips)
At the time of writing, Gold is now bouncing, which is normal, trading around 3280.
❓ Correction Done or More to Come?
While the bounce to 3280 may look promising for bulls, my opinion remains unchanged: this is still a market to sell rallies, not to buy dips.
🔎 Why I Still Expect a Deeper Drop
- Old support becomes resistance – The 3280–3285 zone, once support, is now acting as resistance. That zone is currently being tested.
- Double resistance near 3300 – Just above, we have the psychological 3300 level, reinforced by the falling trendline coming from recent highs.
- Momentum still favors the downside – Unless bulls can reclaim and hold above 3300, this rebound is nothing more than a dead-cat bounce.
📉 Trading Plan
I remain in sell-the-spike mode. Any move into 3285 or 3300 is an opportunity to enter short, with stops above the trend line or yesterday's high.
If price breaks back below 3265, the probability increases for a new local low under 3250, probably to the next one around 3215.
✅ Final Thoughts
Yesterday’s setup worked perfectly — and the plan doesn’t change just because of a small bounce.
The market needs to prove it can break key resistance before shifting bias.
Until then, this remains a sell-on-strength market. Let the trades come to you. 🚀
Disclosure: I am part of TradeNation 's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
