Gold: Shorts from 4250 Profit — Beware of Shakeouts TodayOn Monday, gold moved higher within a range. It first surged to 4255 but met resistance and pulled back to find support, then consolidated around 4220 before moving upward again. Later, it was once more pressured downward near 4265. Yesterday, I publicly suggested buying below 4220 and watching the resistance near 4250—selling if the structure turned unfavorable. Today, gold pulled back below 4200. After taking profits perfectly during the drop, we executed a new long entry and captured a small gain.
From a technical perspective, based on the triangle breakout projection, the short-term key support zone defining bullish or bearish strength is 4170–4180. Within this zone, the strategy remains to follow the trend and buy. On a larger scale, gold is trading within the 4380–3890 range, which serves as the trend divider: a breakout above 4380 would restart the bullish trend, while a breakdown below 3890 would confirm a bearish trend.
So far, gold has completed its first test of the 4200 area. The short-term pattern continues to reflect a cycle of pushing higher, pulling back, retesting, and repeated consolidation. This level is likely to see more fluctuations. The key focus is whether the market can reclaim 4236–4245 during the next upward move.
Today’s trading plan:
Sell lightly near 4245 on a rebound; if the price breaks strongly, watch the resistance near 4265.
Buy near 4200 on pullbacks; if support breaks, watch the 4179 zone.
