Where will short sellers go as gold surges?
Updated
Gold has continued to surge, with the price breaking through the 2200 mark, breaking the historical high of 2222 and then hitting a new high of 2236. The current market is still a bullish trend, and the new high of 2236 will definitely be broken, but according to the monthly, weekly, and daily lines, and the big positive column at the same time, Another new high is expected next week. The monthly low of 2038 stabilized and increased by 198 points. This week's weekly low of 2163 stabilized and increased by 73 points. The daily low of Thursday's low of 2187 stabilized and bullish momentum increased, rising by 49 points. Since the market will be closed on Good Friday this Friday, next week’s non-agricultural data will become a life-saving straw for gold short sellers.
From the perspective of the monthly structure chart of gold, the March monthly line has closed a big positive column, the short-term gold monthly line is still standing above the upper Bollinger track, the monthly large-cycle moving average is running upward, and the monthly K-line is standing above the moving average system. , the bulls are stabilized, and the monthly line is biased towards the bulls. Looking at the gold weekly structure chart, the lower part touched the support 5 moving average 2163 and pulled up strongly. The market continued to rise along the upward trend line. The big positive column closed this week, but the recent upward trend line of 2175-2187 was effectively supported and did not go down further. There is still support at this position. The 2200 mark that was emphasized in the early stage is still the dividing line between gold's long and short positions. The rebound is not over yet. From the perspective of indicators, the RSI indicator turned upward at a high level, the MACD indicator ran at a high level, and the indicator showed that gold is biased upward. Operationally, it continues to hold the upper line of the Bollinger Band and continues to see the bullish trend of gold.
From the daily structure chart of gold, the daily line stabilizes the 5-day moving average and strengthens, breaks the Bollinger Band upper track, hits the upper track and strengthens, and then starts to fall back after a strong bullish trend, testing the first-line support of the Bollinger Band upper track, and for two consecutive times. After testing the upper line of the Bollinger Bands for the first time and stabilizing, gold has completed its second bottoming. There is a high probability that it will continue to strengthen next week. At the same time, it once again closed the positive column at the upper line of the Bollinger Bands, forming a bullish piercing K-line pattern, which tends to stabilize and rise. The probability is high. From the indicator point of view, the middle part of the KDJ indicator turns upward, and the MACD indicator reaches a high golden cross. The indicators show that gold is biased upward. Judging from the 4-hour structure chart, there is a bull trend with rising lows and new highs. At the same time, the 4-hour chart constructs a large W bottom, and it is a W bottom that breaks the neckline of the W bottom. The bulls are strong, and at the same time Gold is rising along the 10 moving average, so next week we will focus on the 10 moving average, which is the support near the 2200 mark. From the indicator point of view, the KDJ indicator is flat at a high level, and the MACD indicator is golden cross at a high level, so there is a need for adjustment in the short term towards gold, and the adjustment is still in place. It is an opportunity to go long. Based on the monthly, weekly, daily and 4-hour lines, gold will continue its bullish trend next week and continue to strengthen.
The upper resistance point is 2270-2285, and the lower support point is 2200
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