11.11 Morning Gold Analysis
Gold prices fell sharply yesterday, touching a low of 4013 and currently fluctuating around 4033. After the rapid short-term decline, an oversold rebound may be due. However, the short-term bearish structure remains unchanged. This rebound should be viewed only as a pause in the decline, not a trend reversal.
Pay close attention to the resistance zone above. If the rebound is met with resistance, the market remains at risk of a second test lower. The key support below is the low of 4013. Holding above this level is necessary for stabilization and recovery; a decisive break below it would open up further downside.
Trading Strategy
Look to establish short positions on a rebound into the 4045–4060 range, with an initial target of 4013. If this level breaks, follow the move lower.
Gold prices fell sharply yesterday, touching a low of 4013 and currently fluctuating around 4033. After the rapid short-term decline, an oversold rebound may be due. However, the short-term bearish structure remains unchanged. This rebound should be viewed only as a pause in the decline, not a trend reversal.
Pay close attention to the resistance zone above. If the rebound is met with resistance, the market remains at risk of a second test lower. The key support below is the low of 4013. Holding above this level is necessary for stabilization and recovery; a decisive break below it would open up further downside.
Trading Strategy
Look to establish short positions on a rebound into the 4045–4060 range, with an initial target of 4013. If this level breaks, follow the move lower.
