Echen: Major bearish weakness signals appear! Gold still needs to keep falling tonight

On the four-hour timeframe, the price has already broken through the Bollinger middle band support. The moving average structure is weakening. The middle band has shifted from support to a strong overhead resistance. The Bollinger channel is narrowing and moving downward. The short-term bearish trend is fully taking the lead. The KDJ indicator’s three lines are sticking together and moving downward, staying in a neutral-to-weak range. In the short run, downside momentum still has room to be released. No stabilization or reversal signals have appeared near the lows. Above, the primary suppression to watch is the 4745 Bollinger middle band area. If price rebounds to this level, it is a short opportunity—open shorts in batches there. The 4794 range high forms a strong resistance. Below, focus on the 4696 Bollinger lower band support. Once it is broken effectively, it will open up a new round of downward room.

Although there are bullish expectations from long-term institutions, short-term funds are escaping at high levels, and the pullback sentiment is strong. The midnight market continues the weak, sideways-to-downward consolidation rhythm. If rebounds lack strength, the downward space will keep opening. The main approach is to go with the trend and arrange shorts on rebounds, while strictly controlling any continued selloff caused by a break of key supports.

Suggestions:
Open shorts in batches around 4740-4760 on rebounds; for the aggressive approach, open shorts around 4620. Targets: 4680, 4650. If it breaks further, continue looking down to 4600, 4550

Disclaimer: The above analysis is for reference only and does not constitute investment advice. You bear the risk for any actions taken based on it. $XAU