Gold price falls, short sellers make big profitsYesterday, gold fell under pressure at 3150 and then tested the 3100 mark again in the evening, breaking the previous trend line that had been rising for several days. The market gradually slowed down from strong bullish trend, and the daily line turned negative.
Don’t expect the market to turn to bearish and fall sharply at this point. The long-short conversion needs time to brew, and now it is still a bullish trend, so the probability of forming a volatile trend here is relatively high, with a range of 3138-3100. Only when it breaks below 3100 can we see the market turning to bearish.
If the daily line is just a single negative correction, it will not change the overall upward trend. It depends on whether it can continue to close negative today.
The previous trend line support broke and turned into a pressure line, basically coinciding with the 3135-3138 first-line pressure line. The three consecutive positive waves this morning just touched it. The key depends on the performance of the European session:
If the European session suppresses the decline and weakens, then the third test of 3100 may break.
If the European session continues to strengthen and break through 3138, it will also hit the high point of 3148-3149
In terms of trading, a total of three orders were operated yesterday:
1. In the morning, it directly rose and broke the high, aggressively chased more at 3132, and stopped profit at 3145;
2. After the afternoon, it fell back to 3133 and continued to buy more. The callback was too large and stopped loss at 3125;
3. The European session rebounded several times without success and remained sideways. At night, it was lightly short at 3132, and automatically stopped profit at 3110 around midnight.
