3.19 Gold Rebound is Bearish, Long Position Relief Breakthrough is Imminent

Gold's sharp decline has left many investors holding long positions from higher levels. If they haven't exited with stop losses, most are likely in a trapped position now. Given the current market conditions not cooperating, it's basically very difficult to break even on exit. If you also have trapped positions, feel free to communicate with me. I will formulate corresponding relief strategies based on your situation!

Market Review: Gold opened at $5011 yesterday, reached a high of $5016 before bulls lost momentum. During the European session, it suddenly plunged, quickly dropping to around $4900, with the US session extending the decline to a low of $4800, with a daily drop exceeding 200 points.

From the daily chart perspective, bears are in control with MACD green histogram expanding and RSI oversold but showing no signs of reversal. KDJ is oversold. On the 4-hour chart, price has broken below the 5-day, 10-day, 20-day, and 30-day moving averages. The short-term downtrend channel is fully open, and the intermediate uptrend has been damaged. MACD shows a death cross with widening negative values, and bearish momentum is being released intensively. However, the KDJ K-value has dropped to 13.66, entering a deep oversold zone with short-term technical correction expectations. Current key support is at ‌4800-4780 USD‌. If it stabilizes in this zone, a small rebound may occur. If it breaks, it could test further down to the intermediate support zone of ‌4700-4600 USD‌. Upper resistance to watch is ‌4900-4950 USD‌. Despite brief stabilization, no reversal has appeared - bears still dominate.

Gold Trading Strategy: Sell short on rebounds at 4870-4880 in batches, stop loss at 4920, target ‌4800

Disclaimer: The above content is merely personal thoughts and viewpoints sharing and does not constitute trading advice.