XAU/USDT (Gold) rebound high-altitude strategy direction: Short
Leverage: 10x (or adjust according to your preference)
Entry range: around 4196 (half of the long red candle, first resistance level)
Additional entry: around 4250 (strong pressure level; prior support/resistance flips)
Stop-loss: 4260 (if price holds above 4250, give up the short idea)
Take-profit targets: 4077 (first support). If it breaks, look down to 4030 (the low wick tip from the previous low)
Strategy rationale: With the probability of the October rate hike surging to 70.9%, the USD and U.S. Treasuries have strengthened, and gold funds have left the market. Technically, the daily chart has already broken below the 4250 trendline and closed with a strong bearish engulfing/long bearish candle, absorbing at saturation. Even though there is a 15-minute bullish divergence at the bottom, do not blindly try to bottom-fish before the 4H chart shows a bottom divergence. As long as the rebound does not exceed one-third of the long bearish candle, continue to short in line with the trend. If 4250 is not firmly established, do not fantasize about a reversal!
Leverage: 10x (or adjust according to your preference)
Entry range: around 4196 (half of the long red candle, first resistance level)
Additional entry: around 4250 (strong pressure level; prior support/resistance flips)
Stop-loss: 4260 (if price holds above 4250, give up the short idea)
Take-profit targets: 4077 (first support). If it breaks, look down to 4030 (the low wick tip from the previous low)
Strategy rationale: With the probability of the October rate hike surging to 70.9%, the USD and U.S. Treasuries have strengthened, and gold funds have left the market. Technically, the daily chart has already broken below the 4250 trendline and closed with a strong bearish engulfing/long bearish candle, absorbing at saturation. Even though there is a 15-minute bullish divergence at the bottom, do not blindly try to bottom-fish before the 4H chart shows a bottom divergence. As long as the rebound does not exceed one-third of the long bearish candle, continue to short in line with the trend. If 4250 is not firmly established, do not fantasize about a reversal!