Gold in European trading: 1 hour of 10 consecutive bullish candles, still pushing higher here, but still shorting!

Gold Digger Old Cat 2026-05-06

Every extreme surge in the market is a battle between emotion and risk; at crazy highs, courage and rationality are often just a hair apart.

From the 1-hour chart, the price has already experienced an extreme rally with 10 consecutive bullish candles, currently pushing directly toward the upper band of the Bollinger Bands near 4683, with a high touch above 4670. The short-term bullish sentiment has been fully released, and the divergence rate has reached a high of 1.63. Overbought signals are very obvious. This continuous unilateral rally inherently has a strong technical correction demand.

In the European afternoon session, the idea of continuing to short from the high remains unchanged. Even if wrong, we should still short aggressively at this level. The current price is already in an extremely overbought zone. The area around 4670-4680 above is a double resistance from the Bollinger Band upper band and previous highs. The shorting risk-reward here is very high. The first target below is a pullback to 4630-4620. If the price can effectively break below 4600, it can further target the 4580-4560 range.

The above content is only a personal trading idea sharing and does not constitute any investment advice. The market carries risks; trading should be cautious. #黄金