3875-3850 sell high and buy low,break to determine the directionGold continued to rise during the day and then fell into a narrow range of fluctuations after hitting the high of 3870. Initially, we expected gold to form a double top pattern, suggesting a potential sharp decline. But brothers, do you remember that I have repeatedly emphasized recently that the US government is facing the risk of shutdown? Yes, the U.S. federal government officially shut down at 12:01 a.m. Eastern Time on Wednesday because Democrats and Republicans failed to reach an agreement on a short-term spending plan.
As I mentioned before, a government shutdown would impact the release of important data such as ADP and NFP. The NFP data, originally scheduled for Friday, may not be released on time. At the same time, the government shutdown will also have a certain impact on the US economy, which will indirectly affect the gold trend. This is why VIP members and I chose to change the TP to 3855 and exit the market with profits.
Judging from the market trend, the current gold rising channel has not been broken, and gold is still in a bullish trend in the short term. Key support is at 3850; as long as this level holds, the bullish outlook remains. Pay attention to the pressure of 3870-3875 on the upside. Once it breaks, the gold price will test the channel pressure of 3890-3900.
