Violent rebound after a crash! 3980 lifeline holds, targeting 4080!

After Thursday’s late-session gold plunged to an extreme low of 3983, it bottomed out and rebounded. In today’s Asia session, it has been consolidating and moving upward. It is currently showing strength and stabilizing around 4056. The intraday gain is 1.35%. The market is forming a recovery pattern of “deep drop rebound, steady climb.” With fierce long-vs-short competition, 3980 is the absolute life line for short-term longs. If it holds, a continuation of the rebound is highly likely.

Technically, the market shows interwoven long and short signals: At the daily level, the TRIX trend indicator is still in a dead-cross state, indicating that the medium-term bearish structure has not been fully reversed. However, the MACD fast and slow lines show signs of turning upward below the 0 axis, and the green momentum histogram has started to shrink—bearish momentum is clearly weakening, and strong rebound repair demand remains. On the four-hour chart, a “golden needle probing the bottom” formation has formed. The RSI has rapidly rebounded from the oversold area (28) to the 52 neutral-to-strong zone. After the KDJ forms a low-level golden cross, it continues trending upward. Price has successfully reclaimed the 5-day and 10-day moving averages, giving short-term longs control. The 4000 psychological level has shifted from a strong resistance to a key support. The 4060–4080 zone is the primary near-term suppression range. A breakout could potentially open further upside space.

Conservative plan: Go long on pullbacks to 4030–4050 and also on 4005–3990. Targets are 4070–4080; after a breakout, continue looking higher. If the rebound reaches 4080–4090 and faces resistance followed by a drop, you can try a small short position, with a stop-loss at 4110 and targets at 4050–4040.