4.7 Gold Short Position Thinking Released: Selling on Rallies Is the Main Trend

From the 4-hour price action, after gold price formed a stage peak at 4706.67, it has entered a clear pullback. The candlesticks show an alternating structure of big bearish candles smashing the market plus small bullish and bearish candles for repair. The highs are gradually moving lower, and the lows are dropping in tandem, forming a standard descending channel. The price has effectively broken below the lower bound of the previous 4650-4660 consolidation range. This range has completed a full conversion from a support zone into a strong resistance zone, becoming the key suppression level for subsequent rebounds. In the short term, the moving average group (MA5/MA10/MA20) has turned downward across the board. Price continues to trade below the moving average system, and the moving averages remain in a bearish alignment, continuously suppressing price rebounds. The bearish trend signals are clear, and the overall direction is to short on rallies as the core idea.

From the 1-hour price action, gold has already broken below the MA5/MA10 short-term moving averages, and it has continued to trade below the MA20 mid-term moving average. The short-term trend is weak, rebound momentum is insufficient, and the pressure characteristics are evident. Overall, the moving averages have shifted to a flattening state and then slightly downward, which is typical of weak-ranging conditions within a downtrend. If gold holds above MA5/MA10 (above 4650) and the KDJ re-enters a golden cross, it may challenge the 4680-4700 range. If gold breaks below the 4600 support and the KDJ/RSI weaken at the same time, it will open up room to move down toward 4580-4550. Taken together, the 4-hour bearish trend sets the tone for the bigger direction, the 1-hour weak range provides the short-term timing, and the overall trading strategy is mainly to short on rallies.

Gold Trading Strategy: In the 4670-4665 rebound range, short with a light position; stop loss 4680; target 4620–4600

Disclaimer: The content above is for personal ideas and viewpoints only and does not constitute trading advice