May 18 Wenjie Morning Market Analysis

Last week, precious metals generally showed a rally followed by a pullback, with prices reaching the 4773 level before facing resistance and declining again, consecutively breaking through multiple key support levels. The recent decline bottomed out around 4511. The weekly trend of adjustment has already taken shape, with bearish forces continuously releasing, and the overall market trend remains weak.

In the short term, conditions for stabilization and reversal are not yet present, and the market is likely to continue weak oscillation and consolidation. After a slight rebound, prices still face downward pressure.

From a market perspective, the high-level fluctuation of the US dollar index suppresses the market, and various external news have unpredictable impacts. Previously tight economic data are still being gradually digested, and the safe-haven support across categories is insufficient. The upward momentum is unlikely to be sustained. The rebound space in the market is limited, and the short-term weak trend is unlikely to change easily. The temporary rise is only a technical adjustment and not a trend reversal signal.

Trading strategy:
- Consider short positions when the rebound reaches the 4550-4570 range.
- Target 4520-4470.