Reviewing the overall gold trend in recent sessions, after a sharp plunge and a test of the low at 3881, the market began a sustained bullish rebound and recovery. Bullish sentiment continued to improve, with prices repeatedly testing resistance and pushing toward previous highs. However, after rising into the key 4140–4150 range today, the price met precise and intense selling pressure from bears, bringing the upward momentum to an abrupt halt.
From an overall technical perspective, the 4140–4150 range is a significant concentration of positions and resistance zone in the current downtrend, as well as an important psychological threshold separating short-term bulls and bears. After surging higher, prices stalled and formed a clear reversal pattern with a long upper wick. This shows that bullish momentum behind the rebound has been fully exhausted, with intense overhead resistance and concentrated selling pressure from bears.
The current market action makes it clear that this rebound is merely a standard corrective pullback within a downtrend, not a signal of a trend reversal. Until prices break through and remain firmly above the key resistance at 4150, the overall bearish structure remains intact. Following the trend by positioning short at elevated levels remains the core trading strategy, offering the least resistance and the best balance of safety and risk-reward.
Trading recommendation: enter short positions in the 4120–4115 range, with targets at 4100–4080. On a breakout, look toward 4060$XAU #XAUUSD
From an overall technical perspective, the 4140–4150 range is a significant concentration of positions and resistance zone in the current downtrend, as well as an important psychological threshold separating short-term bulls and bears. After surging higher, prices stalled and formed a clear reversal pattern with a long upper wick. This shows that bullish momentum behind the rebound has been fully exhausted, with intense overhead resistance and concentrated selling pressure from bears.
The current market action makes it clear that this rebound is merely a standard corrective pullback within a downtrend, not a signal of a trend reversal. Until prices break through and remain firmly above the key resistance at 4150, the overall bearish structure remains intact. Following the trend by positioning short at elevated levels remains the core trading strategy, offering the least resistance and the best balance of safety and risk-reward.
Trading recommendation: enter short positions in the 4120–4115 range, with targets at 4100–4080. On a breakout, look toward 4060$XAU #XAUUSD
