How to view GOLD after the sharp drop — I would have previously rushed to counter-trade in such a scene.

Today, not that way; I will calmly organize the thoughts.

The bearish view remains unchanged. However, today I judge that there is not a suitable entry opportunity. I will explain the reasons in order.

Today's Market Situation

The current price is $4,331.70.

Gold fell sharply in the latter half of last week, plunging toward around $4,268. After that, on the start of this week, it shows a slight rebound and is hovering in the $4,330s.

The 1-hour EMA20 (short-term moving average) is $4,330.111, EMA75 is $4,380.761, and EMA200 (long-term moving average) is $4,440.736, showing a clean decline from short-term to long-term. The RSI (relative strength index, indicating overbought/oversold) is currently 48.25, just below 50.

In short, the trend remains downward, but it is in a rebound phase after the sharp drop, and the sense of direction is somewhat unstable.

GoGotoro’s View

This article is personal analysis and does not constitute investment advice or solicitation. Please make trading decisions at your own risk.

My bias remains strongly toward selling.

If it retraces toward around $4,380 (1H EMA75), I see that as a notable area for selling on the rebound. However, as of today, I cannot identify a line where stop-loss could be set reasonably, so I will refrain from entering.

On the other hand, if it clearly breaks below $4,268 (the previous day's low), I would be conscious of a continuation of the decline as a signal. However, even in that scenario, profit-taking evidence is currently limited, so I think we should be cautious.

The RSI on the 4H chart has fallen to 37.87, near oversold levels. Downward pressure on higher timeframes continues, but there is a risk of a short-term rebound that should be kept in mind.

Today's Reference Lines

There is no point satisfying RR1.5 today, so I am skipping entry. The following are for reference.

There are no reference entries today.

Important Lines

Resistance ①: $4,355 (basis: previous day high) Resistance ②: $4,380 (basis: 1H EMA75) Support ①: $4,330 (basis: 1H EMA20) Support ②: $4,270 (basis: previous day low) 1H EMA200: $4,440 (beyond this line, upward acceleration)

Today's Word

“Choose a well-founded pause over blind courage.”

This article is personal analysis and does not constitute investment advice or solicitation. Please make trading decisions at your own risk. If this was helpful, a follow would be encouraging. For questions or thoughts, please feel free to comment.