Gold prices saw a sharp “V”-shaped recovery at the start of the week, but the bears haven’t retreated! Today’s trading revolves around the 4550-4700 range.
On Monday, international gold markets opened normally. After last week’s non-farm payroll data, gold prices were under pressure from the open, hitting a low of $4600. However, the market didn’t collapse; instead, it put up a strong resistance at the lows, rebounding to around $4705. Throughout the day, gold prices fluctuated between $4600 and $4705, ultimately closing around $4660. The intraday dip and rebound showed an overall weak pattern of high-level consolidation and weak recovery – there was a rebound, but the upside was limited.
Technically, the daily chart shows a small bearish candlestick with a long lower shadow, a typical continuation pattern in a downtrend. The moving average system remains bearish, with the 5-day and 10-day moving averages strongly suppressing gold prices from above. Although the MACD histogram has slightly contracted, it remains below the zero line, indicating that the bearish momentum hasn’t truly subsided. In short: the overall trend is still bearish. Looking at the 4-hour chart, the Bollinger Bands are starting to narrow and are consolidating. The MACD has barely formed a golden cross below the zero line, and while the red bars are increasing in volume, the momentum is clearly insufficient, giving a sense of “willing but unable.” Although the KDJ has entered the oversold zone, it has yet to show a clear signal of turning upwards. It’s highly likely that the price will continue to fluctuate within the $4550-$4700 range.
The 1-hour chart is even more straightforward: the Bollinger Bands are widening downwards, and the gold price has been consistently trading below the middle band. The MACD red bars are continuously shrinking, indicating weak short-term rebounds. Be wary of a retest of support levels.
Today’s overall view is clear: a weak, volatile market, with short-term bears dominating. Rebounds are merely corrections; don’t get carried away by every rise. In terms of trading strategy, short-term traders should focus on selling on rallies, while medium- to long-term traders should patiently wait for lower levels to establish positions.
Key levels have been marked:
Key support levels to watch: 4600, 4550, 4500
Don’t be overly bearish until 4600 is broken; don’t be overly bullish until 4750 is broken.
Today’s Strategy Reference:
Long Positions: Buy lightly in the 4600-4610 area, with a stop-loss below 4580, targeting 4680-4700.
Short Positions: Sell lightly in the 4690-4700 area, with a stop-loss above 4715, targeting 4630-4600.
The market always finds balance between rises and falls. What we need to do is not gamble on direction, but wait for signals at key levels. If you also agree with this “range trading, no chasing” approach, please like and discuss, and let’s wait for the market to provide the next answer.