During the Asian and European sessions, I clearly indicated that the key resistance level to watch was the 4030-4040 area. Due to short-term news-driven stimuli, gold quickly surged to around 4040 before encountering resistance and falling back. We simultaneously placed short orders around 4037, and the price subsequently declined as expected, falling to a low of around 4006, allowing our short orders to be successfully closed.
By adhering to the strategy of selling on rallies throughout the day, we have once again successfully profited. We have accurately grasped the market rhythm for several consecutive trading days, and our trading strategy continues to be validated by the market.
From the chart, the Asian and European sessions remained range-bound, with limited competition between bulls and bears, resulting in relatively low market volatility. The price is currently still trading within the 4050–3982 range.
It should be noted that today's few minor rebounds are more of a technical correction after short sellers took profits, coupled with some short-term safe-haven funds flowing in to drive up prices. They are not a trend reversal signal. The bullish momentum in the market is still insufficient, and the long-term bearish structure has not changed substantially. Therefore, the overall trading strategy should remain to sell on rallies when prices are under pressure. Key short-term focus areas:
📍 First resistance: 4030–4040 area (near the intraday rebound high);
📍 Strong resistance: 4070–4080 area. If the price rebounds to this level and shows signs of pressure, it remains a key area to watch for shorting opportunities;
📍 Support: 3950–3943 area, a crucial support level where the price previously tested and stabilized after hitting a low.
Before the trend changes, any rebound should be viewed as a technical correction rather than a trend reversal. The key to stable profits is to patiently wait for high-probability opportunities, trade with the trend, and strictly follow the trading plan.
By adhering to the strategy of selling on rallies throughout the day, we have once again successfully profited. We have accurately grasped the market rhythm for several consecutive trading days, and our trading strategy continues to be validated by the market.
From the chart, the Asian and European sessions remained range-bound, with limited competition between bulls and bears, resulting in relatively low market volatility. The price is currently still trading within the 4050–3982 range.
It should be noted that today's few minor rebounds are more of a technical correction after short sellers took profits, coupled with some short-term safe-haven funds flowing in to drive up prices. They are not a trend reversal signal. The bullish momentum in the market is still insufficient, and the long-term bearish structure has not changed substantially. Therefore, the overall trading strategy should remain to sell on rallies when prices are under pressure. Key short-term focus areas:
📍 First resistance: 4030–4040 area (near the intraday rebound high);
📍 Strong resistance: 4070–4080 area. If the price rebounds to this level and shows signs of pressure, it remains a key area to watch for shorting opportunities;
📍 Support: 3950–3943 area, a crucial support level where the price previously tested and stabilized after hitting a low.
Before the trend changes, any rebound should be viewed as a technical correction rather than a trend reversal. The key to stable profits is to patiently wait for high-probability opportunities, trade with the trend, and strictly follow the trading plan.
Trade active
The easiest pitfall in trading is being misled by short-term fluctuations, rushing to buy at the bottom after seeing a slight rise, and ignoring the overall downtrend in the larger timeframe. The key to our winning streak over several consecutive days is to follow the trend. Before a clear bottom reversal signal appears, going against the trend to buy the dip will only result in repeated losses and being trapped repeatedly. Learn to respect the market and trends. The market will never tolerate stubborn, opportunistic traders who insist on going against the trend.Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.