12.30 Gold Narrow Range Battle, Beware of Stepping Back to the Previous Low Again!
The spot gold price is touching the 2580 mark, and in the past ten days, gold has been maintaining an upward trend of 2580. Last week, it reached a high near the 2640 mark. At present, I have a premonition that the major trend fluctuation of gold may be coming soon.
Because the hourly chart has already undergone changes, the reason why I was able to persist in a bullish trend earlier is because gold has maintained a triangular support range in the early stages, and even if it retraces, as long as the support is not broken, it is still bullish.
But currently, after falling below 2620 last Friday, the hourly chart range has completely changed.
The previous support has now turned into a suppression point, and today on Monday, gold once again pulled back from the suppression point, which is clearly a top bottom transition.
In addition, in the trend from 2580 to 2725, the 328 position happens to be around 2635, and gold has not yet stabilized above 2635.
If the draw cannot reach position 328, the probability of a new low occurring is very high.
So, I think there are only two possibilities for the development of gold in the future:
1) Return to the previous low of 2580 and then maintain the consolidation trend again.
2) The second is to directly drop below the low point of 2580 and reach around 2550, or even lower levels.
Both trends are currently leaning towards a bearish trend, so I think we should start to focus on short selling as much as possible in the future.
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