Gold has Now Broken Through Key Resistance
Hello everyone! Today i want to share some macro analysis with you!
1
$XAU/USD(XAUUSD.FOREX)$$Gold - main 2612(GCmain)$Asian Session: “Technical buying to cover short positions” following the exhaustion of bearish news.
After touching the 10-day moving average (MA10) at 4,100.44 and today’s low of 4,099.95, gold formed a strong V-shaped bottom and rebounded.
Bullish Counterattack: After several trading days of sharp declines triggered by a reassessment of hawkish rate hikes following higher-than-expected U.S. CPI inflation, bearish momentum has temporarily run out.
Short-Covering: Following the opening of the Asian session, some short positions chose to take profits, creating a rally driven by both “technical short-covering” and “buying on dips”!
Gold has now broken through key resistance and is continuing its advance toward 4,200!
2
XAUUSD 1-hour candlestick chart (latest price: $4,198 intraday decline: -1.55%): After breaking below 4,100, the gold price has entered a phase of consolidation at lower levels to build momentum.
Following two consecutive sharp declines marked by large bearish candlesticks, the latest candlestick formed a long lower shadow (rebounding after touching 4,079.6), indicating support in the 4,080–4,090 range from buy orders resulting from the closing of some previous short positions and short-term bottom-fishing by traders.
The current strategy is: strictly adhere to the bearish downtrend, but be prepared for a sharp short-term rebound. Avoid blindly chasing short positions near 4,095; instead, patiently wait for a sell signal from the right side at higher levels.
First Resistance Zone (Preferred Shorting Area): 4,110–4,115 (previous low with high trading volume)
Second Resistance Zone (Strong Resistance Zone for
Short Positions): 4118–4125 (30-minute MA10 resistance line)
Solid Support Below: 4080–4085 (Today’s final defense line for long positions in the larger time frame)
Gold is highly likely to stabilize around 4050 and then continue into a phase of wide-range consolidation!
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