Gold shock, can the direction be decided?
Recently, the gold market has been in a narrow range, but after yesterday's extreme convergence, it finally fell significantly. The price weakened at the 2650 line, and the market continued until the opening of the Asian session. It accelerated downward for the second time, and finally stopped falling and quickly rebounded after touching the 2612 line. This fluctuation shows the drastic change in market sentiment and investors' reassessment of the current price level.
From the daily chart, gold is still in a narrow convergence pattern, and overall it is consolidating and accumulating momentum in the high range. This state usually indicates that the market is waiting for a major breakthrough, whether it is an upward breakthrough or a downward expansion, it may trigger a wave of market conditions. Therefore, investors need to pay special attention to the upcoming important data or events when operating, so as to adjust their strategies in time.
In terms of the hourly line, after yesterday's sharp rise and fall, gold formed a V-shaped reverse structure that broke down. The formation of this structure means that the market may enter a new trading stage after experiencing rapid fluctuations. The current upper 2647 line has become an important pressure point. If the price can effectively break through this position, it is expected to test the previous narrow range of 2655 and 2665. However, if 2647 cannot be broken, the market may further pull back.
The support level below is set at 2635. If this position is broken, it may trigger a deeper adjustment and test the support of 2624 and 2610. Therefore, investors should pay close attention to these key price levels when operating.
Overall, the market trend of gold is still in a state of horizontal operation at the interval level. In the short term, the upper hourly downward trend line puts pressure on the price, and the volume is exhausted after breaking the V-shaped reverse pull-up. It is recommended to take the resistance of 2647 as the main pressure in the short term and adopt a high-altitude strategy. In terms of specific operations, you can sell in batches when it rebounds to the 2640-2645 area, and pay attention to the support levels of 2635, 2624 and 2610 below, and 2655 as a defensive position.
In the current market environment, maintaining flexible operating strategies and clear risk management will help investors seize opportunities in the volatile gold market and effectively avoid risks.
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