Muyao: The high-level washout ends, and the bearish pattern dominates the early trading rhythm

Yesterday, the gold price saw a dramatic high-level washout. After pulling back to 4116, it surged to 4180 but met resistance. In the early hours, concentrated capital exited the market, and the price broke below 4100. The daily chart closed with a bearish candle, and a short-term bearish setup has been established.

There is still room for further downside on the daily timeframe. 4160 is the key resistance level. On the hourly chart, resistance lies at 4145. The core approach is to set up short positions based on rebounds. 4118 is the short-term strength-versus-weakness line in the sand; under sustained pressure, bulls will find it difficult to launch a counterattack.

In early trading, price quickly probed down to 4108. The market tone is weak. Without an effective break below 4100, do not blindly chase shorts. If it breaks, look toward support at 4070. If it stabilizes, you can position longs. If it then loses support again, the next downside target is 4040. Trade priority: short near 4118 on a rebound. If price rises above 4140, you can add shorts. If lower-level support stabilizes, then choose to go long at lower prices.

In terms of execution:
Short around 4120; when price oscillates and pushes higher to above 4140, add shorts; on a pullback to 4070 and 4040 where support stabilizes, go long at lower levels.

Reminder:
The analysis above is Muyao’s personal viewpoint. The market changes rapidly. This content is for reference only and does not constitute any investment advice!
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