Technically, on the daily chart, gold prices have stabilized after holding below the short-term moving averages and are showing a slight rebound. The level of $4490 has been tested multiple times previously without being broken, forming a strong bottom support. Technical indicators are undergoing a correction; the MACD is forming a preliminary bullish crossover at low levels with the green bars continuing to shrink, while the KDJ has turned upward after moving out of the oversold zone. Bearish momentum has significantly weakened, and bullish counterattack forces are gradually accumulating. However, the overall daily chart remains in a range-bound consolidation phase and has not yet formed a unilateral trend.
The 4-hour chart shows a clearer trend, with prices oscillating and rising while supported at key levels. The moving averages are gradually converging and flattening, indicating clear characteristics of short-term consolidation and correction. On the 1-hour chart, prices experienced a slight pullback after a minor surge, suggesting a short-term need for a small correction. However, downside potential is limited, and the pattern shows signs of forming a head-and-shoulders bottom, indicating that the overall trend remains biased toward consolidation with a bullish inclination.
Key price ranges: On the resistance side, the first resistance lies at 4530-4535, which serves as the short-term boundary between strength and weakness. A slight surge above this level is likely to face pressure and result in a minor pullback for correction. The second resistance is at 4550-4555, the core strong resistance level for the day. A breakout above this level is required for the rebound to continue. On the support side, the first support is at 4510-4515, which acts as the short-term defensive level in the morning session. If this level holds during a pullback, the bullish bias remains intact. The second support is at 4495-4500, the key support level for the day. Holding above this level ensures the rebound structure remains unchanged.
Trading recommendations: Consider buying near 4510 with a stop loss at 4500 and a target of 4545. If the price breaks through this level, watch for further extension. Alternatively, consider selling near 4540 with a stop loss at 4550 and a target of 4500. If the price breaks below this level, watch for further extension.
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