Short-Term Rebound and Conservative Short Strategy
As gold prices approach the market closure phase, technical indicators indicate a bullish momentum in the shorter timeframes. However, the potential upside is limited, anticipated to be around 5-6 points, and may require several hours of consolidation to reach. A significant resistance level exists in the 2670-2673 range, primarily driven by selling pressure from concentrated trading volumes and the appreciation of the US dollar. Currently, the market lacks effective news catalysts for momentum; thus, a conservative trading strategy should focus on short positions at elevated levels. The anticipated target range for this strategy is between 2646 and 2653. Compared to going long, the profit potential from shorting is expected to be more substantial.
XAUUSD GOLD GC1! MGC1!
XAUUSD GOLD GC1! MGC1! Trade active
The gold price fell by about 6 points in the short term. Shorting is indeed profitable. It is just necessary to prevent sudden news. For example, the outbreak of geopolitics. So if it is a novice trader, remember not to sell or buy all when following the strategy. You must use a certain proportion of positions to control the trading risk. Even if the transaction fails, the loss is acceptable.
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