Thursday morning #XAU outlook: Gold has fallen all the way to a low of 3909. It is not advisable to blindly chase shorts after a sharp drop, nor is it recommended to go all-in trying to catch the bottom.
After breaking below 4000, the short-term outlook is weak, but don't chase shorts after a sharp drop. Wait for signs of a rebound from the support zone, then try a small long position; take profits first if it rebounds to the resistance zone. 3909 is a lower-level area to watch; wait for confirmation before following through, and be sure to use a stop-loss.
Trading suggestion: Build long positions in the 4000–3980 range, with targets at 4040–4070$XAU
After breaking below 4000, the short-term outlook is weak, but don't chase shorts after a sharp drop. Wait for signs of a rebound from the support zone, then try a small long position; take profits first if it rebounds to the resistance zone. 3909 is a lower-level area to watch; wait for confirmation before following through, and be sure to use a stop-loss.
Trading suggestion: Build long positions in the 4000–3980 range, with targets at 4040–4070$XAU
