Has gold seen bottom? Can we continue to be bearish?
Yesterday I clearly suggested shorting at 2648, and 2630 was not the short-term bottom. The final result was in line with expectations and unexpected, because the gold price plummeted by nearly $50, not only reaching our target of 2615, but also reaching the lowest point of 2604. I believe that friends who follow the trading strategy have made a lot of money. Congratulations!
Let's get back to the point. Because the market's bets on the Fed's sharp interest rate cuts have faded and most of the market's positions have chosen to take profits, gold fell sharply by nearly $50 during the US trading session yesterday, with the short-term low reaching 2604, and then the decline narrowed. As of now, it has remained around 2620 for consolidation.
From the gold daily chart, although the lowest point reached 2604, the final closing price was above 2620, just when the daily MA20 daily moving average position was held, and there was no effective break.
So since the lower support has not broken, we cannot directly choose to continue shorting today. Instead, we have to wait for the rebound power to be consumed before going short, and the upper suppression area will be a good choice.
From the 1H chart, the previous support of 2630 has now turned into resistance, and the same is true for the 2640 line. Therefore, today we need to observe the resistance situation in the 2630-2640 area. Once there is a sign of reversal here, I think it is an opportunity to short.
If there are any latest changes in transaction details, I will update you in time in the channel. If you are interested, you can enter below.
