3.27 Gold Rebound Meets Resistance, Short Positions Could Capture 80 Points

Market Review:

Yesterday, gold opened around 4511 and oscillated upward, reaching a high of 4545. The bulls briefly continued their rally. During the European session, influenced by easing tensions in the Middle East, market risk sentiment quickly cooled, and funds rushed out of gold, causing prices to plummet. Gold broke through the 4500 level support, with the lowest dropping to around 4412. Before the US market opened, my blog post by Ye Youyuan suggested shorting in the 4460-4470 range in batches, targeting 4380-4350, aiming for a 100-point profit space. After the US market opened, prices briefly rebounded to 4480 before facing resistance and falling again. In the early morning, gold hit a low of 4351. During the session, I guided students with a short-selling strategy, which yielded good results!

On the 4-hour chart, since the low of 4351 yesterday, a deep correction was completed. The gold price is above the short-term moving averages, near the middle of the Bollinger Bands. It rallied with consecutive bullish candles, recovering some of the decline. The highs are gradually moving lower, and the MACD shows a bullish crossover below the zero line, indicating a correction during a downtrend rather than a trend reversal. Currently, the rebound is encountering resistance and falling back, short-term weakness has resumed.

On the 1-hour chart, MA5/MA10 are converging and flattening, MACD is turning downward, with the red histogram narrowing and about to form a death cross. The Bollinger Bands are tightening, and short-term volatility is decreasing. Caution is advised for a test below 4400. Only if it stabilizes above 4480 can we look for a rally. Today, focus on resistance in the 4480-4500 range, and watch the 4400 level. A break below will accelerate weakness. Overall, today’s strategy remains to mainly short on rallies.

Gold Trading Strategy:
Short in batches around 4480-4490 on rebounds, with a stop loss at 4520 points, targeting 4400.

Disclaimer: The above content is for personal ideas and opinions sharing only and does not constitute trading advice.