Gold Weekly Analysis: Breaking Down After 3300 Support FailureCurrent Market Structure:
Gold breakdown below critical 3300 support level last Friday, and more importantly, we closed the week below this key psychological level. This breakdown has shifted the technical structure, and we're now seeing a clear pattern of lower highs (LH) and lower lows (LL) developing as gold enters a downside correction phase.
The weekly pivot has dropped to 3308, showing a descending formation compared to last week's pivot at 3386. This descending pivot structure confirms the bearish momentum that's been building.
Level to Watch:
3308 Weekly Pivot - This is our key reversal level for this week. For any meaningful bullish recovery, we need to see:
1. A convincing breakout above 3308 on higher timeframes
2. Price sustaining above this level
3. Breaking the current LH/LL bearish structure
Without these conditions being met, any rallies should be treated as counter-trend bounces rather than genuine reversals.
Support Zones:
Immediate Support: 3248-3287 (Fibonacci Golden Zone)
This is our primary support area to watch. It's a confluence zone that could provide a decent bounce opportunity if we get there.
Deeper Support Levels:
- 3221Weekly S1 support
- 3200 Major psychological level
If the golden zone fails to hold and we see a breakdown there, these lower levels become our next areas of interest.
The bears are in control of the weekly structure right now. Any recovery attempts need to prove themselves by reclaiming 3308 and holding it on higher timeframes. Until then, we're in correction mode with Fibonacci support levels as our key support area.
