7.1 Gold Evening Commentary: Overbought Pressure Leads to a Pullback; Short Opportunities at High Levels


Gold prices probed the bottom and rebounded to 4024. The intraday low at 3960 completed a rebound and repair. In the short term, RSI has entered severe overbought territory; bullish momentum is stretched, and short opportunities at high levels are becoming apparent.

Technical analysis: 1-hour Bollinger Bands upper 4041.40, middle 3998.55, lower 3955.71; 30-minute Bollinger Bands upper 4004.58, middle 3980.28, lower 3955.99. The 30-minute gold price pierced the upper band, indicating a pullback requirement. RSI readings on both timeframes are elevated, and the pressure for a retracement has increased.
Short-term resistance: 4026, 4041; support: 4004, 3980.

Trading suggestion: The main plan is to short at high levels. Short around 4030–4050, targeting 4005 and 3985. If price stabilizes below, then take a light long position; keep a strict stop-loss the entire time.

Disclaimer: The above is only personal opinion and does not constitute investment advice.
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