Cyclic Patterns Point to 600-Pip Downside in Gold

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Unfortunately, gold failed to reach the expected 3620 target area during the pullback. It only touched around 3628 in the early morning hours before rebounding again. During this period, because I saw that gold could not fall below 3628, and even could not fall below 3630 at one point, I promptly closed all short positions near 3630. Although the two transactions suffered losses due to the slightly lower entry price, because we added short positions near 3636 and 3646, the overall profit was still $10K.

Gold has now rebounded again and continued its upward trend to around 3657, continuing its upward trend. However, aside from opportunities to enter the long position in the 3630-3628 area, there are virtually no other good long entry opportunities. Judging from the current trend, gold still has the potential to continue to rise to around 3665, but since I missed the opportunity to enter the long position at 3630-3628, I will never choose to chase the rise of gold now.

Although the current uptrend is strong, even if you short gold, there are always opportunities to exit safely and profit during the day. Therefore, I still plan to try to short gold in the 3655-3665 area. Of course, keep my tips from yesterday in mind when shorting. When you first try shorting gold today, try to use a small lot size. When adding positions, you can appropriately increase the number of trading lots to increase the average price and increase profit margins. From a shorting perspective, it is relatively safer!

At present, I will pay close attention to the short-term support area of 3640-3630, followed by the area of 3610-3600. Don’t subjectively think that gold will not pull back to the 3610-3600 area, because in the previous band, after gold experienced three 200pips fluctuation retracements, the fourth retracement reached 660pips; and now gold has experienced three 200pips fluctuation retracements again. If it follows the cycle, gold may usher in another retracement of about 600pips, that is, reaching the 3610-3600 area.

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Dagangan aktif

Bros, without paying attention, our short positions have made profits by hitting TP. Gold fell as expected in the short term and touched the target area: 3640-3630 area, and the lowest point was around 3636. Obviously, it also hit the TP: 3638 that we set, and we directly profited 200pips from this short position，If gold rebounds to the 3655-3665 area again, I would still consider continuing to short gold.

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Dagangan ditutup: sasaran tercapai

After gold rebounded to the 3655-3665 area, we shorted gold again around 3656 as planned. Just when gold retreated to around 3647, we chose to close the short position and lock in profits in time.

Today we have managed to make good profits on short trades twice. When gold rebounds to the 3655-3665 area again, we can consider shorting gold for the third time. It is undeniable that shorting gold at this stage can also make money. The only real danger is that you may be too greedy for profits and suffer losses due to unwillingness to exit the market.