Gold drops $100, can we go long?

Gold started to fall from the 2401 position on Friday, and the lowest has fallen back to around the 2296 position, with a drop of $105. With such a large correction, I believe the bulls are ready to make a move, so can I go long on gold now?

Although gold has fallen sharply, it still remains above 2300, so gold has not yet fallen below the upward trend line. From a large-scale perspective, gold as a whole is still in an upward trend. The sharp decline in gold at the short-term level has digested the technical head and shoulders pattern. And although the situation in the Middle East has eased at the news level, the risks have not disappeared. Therefore, after all the negative factors for gold appear, whether it is technical or news support, gold should rebound to a certain extent. I think this should be the trading idea of most bulls.

In fact, according to the current trend of gold, gold has fallen sharply and has broken through multiple key supports. The early key support areas have gradually turned into resistance areas. This is why even if there are occasional local rebounds during the decline, they are not strong. In terms of small-level trends, gold did stop its decline in the 2300 area, but gold has already made an attempt. It stands to reason that there will be at least a second attempt to fall again and hit the 2300 area. Moreover, the rapid and sharp decline of gold will cause a series of selling waves and accelerate the decline of gold. Therefore, I think it is best not to go long gold against the trend now. On the contrary, a small-level rebound is very likely to be an opportunity to short gold.

Finally, everyone also needs to learn from previous transactions. Gold has been rising all the way in the past period, and it has also risen by a lot. How many people have suffered a bloody loss in short trading? Those are bloody lessons. So now the wind direction has changed. During the sharp decline of gold, stop thinking about speculating on long gold. Waiting for gold to rebound and shorting are the only way to follow the trend. In the short term, the main focus is on the resistance in the 2320-2325 area above.

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Gold has just fallen short-term near 2291. I rushed to go long gold at 2292.31, TP: 2306

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Grabbing profits from the short-term rebound does not mean that gold will become a bullish trend, but that we can take advantage of the short-term rebound to grab profits from the rebound, and then backhand short gold after gold rebounds.

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Gold is in the midst of a short-term rebound. The highest level has rebounded to above 2305, which is very close to TP2306.

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Gold has successfully hit TP: 2306. If you followed my trading strategy and went long gold near the 2392 position, then you have successfully made a profit of 14 points.

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Now that our long position has hit TP, we should not continue to be long gold for the time being. After gold rebounds, we still have to follow the trend and short gold.

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Gold has rebounded to a maximum of around 2310. If gold can rebound to the 2315-2320 area, I will consider starting to short gold. If gold rebounds less than expected, I may also short gold in advance.

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The short-term level of gold shows signs of forming a double top. Start shorting gold above 2310.

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Continue to add positions to short gold in the 2330-2335 area

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Set TP: 2305

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Now that the lowest level of gold has fallen back to around 2316, we wait patiently for gold to continue to fall to 2305 and hit TP.

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Although gold has failed to effectively fall below 2315 for many times, the short-term rebound and recovery does not mean the end of short selling, so I think gold will continue to fall, so I still maintain the TP setting of 2305.

Trade active:

Although gold has failed to effectively fall below 2315 for many times, the short-term rebound and recovery does not mean the end of short selling, so I think gold will continue to fall, so I still maintain the TP setting of 2305.