Will the trend of gold reverse this week?
Updated
♦️Current market conditions:
The price of gold has recently fallen sharply from its historical high of $2,790/ounce, reaching a low of $2,537/ounce. After a brief rebound to $2,721, it fell again to around $2,605. The overall trend is still affected by geopolitical factors, and the market is intensifying short-term volatility, and it may remain at a low level in the medium term.🔴
♦️Short-term operation strategy:
After gold rebounded to $2,666 last Friday, it fell sharply to $2,623, indicating that the momentum of short-selling forces is strong in the short term.
The current short-term support level is $2,620. If the price breaks through this level, it is possible to further drop to $2,616, $2,605 or even $2,598. If the market rebounds, the rebound resistance level is between $2,634-2,636, and the strong resistance is between $2,638-2,640-2,642.🔴
♦️Operation suggestions:
The current gold price is around $2,635, and short selling is still recommended in the short term. In terms of operation strategy, it is recommended to enter the market and short near $2638-2640, and the target can be seen at $2616, $2605 or even $2598.
If gold rebounds to the $2640-2642 range, the short position can be appropriately increased.🔴
♦️Risk management:
Any transaction needs to pay attention to stop loss. It is recommended to set a suitable stop loss position when entering the market to avoid sudden rebounds and cause large losses.
For this round of market, it is recommended to short at high levels and rely on strong resistance ranges for operations.🔴
♦️In summary, the current gold market is still showing a bearish trend. The short-term rebound may be under pressure from the $2638-2642 range. The operation is mainly short-selling, and the target is around $2616-2605.🔴
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🔴Weekly chart trend: The weekly chart shows that gold has a trend of high exploration and fall, and finally closed with a medium-sized Yin line, and the gains of the previous week were almost completely swallowed up. The current closing position is low, indicating that the market's buying momentum is insufficient.♦️
🔴Daily chart rebound: On the daily chart, after the sharp drop of the big Yin line, four small Yang lines rebounded in succession, but the rebound was limited and failed to break through the high point of the big Yin line. The overall closing price is still below $2,660, and there is an upper shadow line, indicating that the market selling pressure is still heavy, and gold may still have correction pressure in the short term.♦️
🔴4-hour chart and hourly chart shock range:
4-hour chart: The Bollinger Bands began to close, and the price fluctuation space narrowed, which usually means that the market is in a shock consolidation stage. The support of $2,600 below is very critical. If the price falls below this point, the adjustment space may increase.♦️
🔴Shock range: Judging from the rebound on Friday (near $2,665), gold is under pressure again, suggesting that the $2,605-2,665 range may be the key shock range in the short term. If the price breaks through the upper and lower boundaries of this range, it will determine the direction of the subsequent trend.♦️
🔴Operational suggestions:
Short selling near $2648-2650:
In this price range, if gold rebounds to around $2648-2650, you can try shorting. This position is a very critical counter-pressure zone on the technical side, which is in line with the current market trend of shock consolidation.
Target: First look at $2633 and $2623 as short-term target support areas. If the price breaks through these support levels, you can continue to be bearish and target lower areas.♦️
🔴Risk management:
Flexibly adjust stop loss: Since the gold market often fluctuates violently, it is recommended to remain flexible in operation and adjust stop loss and target positions in time according to market trends to avoid risks brought by sudden market conditions.
Build positions in batches: If you are not sure whether the market will reverse sharply, you can consider entering the market in batches to spread risks and avoid large losses caused by one-time entry.
Trade closed: target reached
According to my previous analysis strategy, gold is indeed a key pressure point near $2650. Many people think that 2650 is the high point and want to short at this position, but I chose not to short directly here because if 2650 can stand firm, it may lead to a reversal of the trend and the market may rise further.
Therefore, we choose to wait for a pullback and short sell in the 2645-2648$ range, which is a safer entry time.
Under this strategy, we successfully captured the gold price from the 2645-2648 range to $2633, realizing a profit of 120 PIPS. By waiting for the gold pullback to confirm the weak rebound, we avoid the risk of false breakthroughs in the market and enter the market accurately within a reasonable range.
This operation method reflects a sound trading strategy: do not chase high, do not blindly follow the trend, but through technical analysis, patiently wait for the best entry time near the key resistance level to ensure that the risk is controllable and maximize profits.
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