On May 21st, from a news perspective: The market initially rebounded from 4480 in the early morning, encountering resistance near the previous day's consolidation level of 4510 before experiencing a sharp decline. It underwent several hours of repeated testing, eventually stabilizing around 4453. In the afternoon, a slow, steady uptrend began with consecutive small gains, currently testing above 4500 again. The price is currently moving within a small ascending channel, with lower channel support noted at 4487. The middle channel line and the 10-period moving average converge around 4485; holding above these levels suggests a continued probability of a rebound. The upper channel resistance is at the recent high of 4552, followed by 4565-4580. Recent price action has consistently been volatile, with the intensity of fluctuations subject to change at any time, lacking clear, sustained trending momentum. Therefore, judgment must rely on the outcome at key price levels. For instance, a decisive break and hold above 4530-4540 would signal a shift to stronger, albeit still range-bound, conditions on the daily chart. Conversely, a decisive break below the intraday level of 4500 would indicate a shift to weaker, range-bound conditions. If neither level is decisively broken, the market will likely continue to consolidate within the range. Personally, I maintain the view that the short-term movement represents a corrective consolidation within the broader bull market, which remains intact. A stabilization and subsequent strong upward move could occur at any time. For those accumulating or holding physical metal, patience is advised.
Key support levels: The first crucial support is at 4500, a significant psychological level. A decisive break below this could open the door for further downside. The second support is at 4480, a key level tested multiple times yesterday, which could serve as an initial reference for potential reversal trades. The third support is at 4450, the area where yesterday's deep decline found stability. A break below this would target the 4420-4400 zone, a previous area of dense trading activity offering stronger support.
Key resistance levels: The first major resistance is at 4550-4552, yesterday's rebound high, which has been tested repeatedly after today's opening. The second resistance lies in the 4560-4580 zone, a significant short-term resistance band suitable for considering short positions. The third resistance is at 4600, a strong psychological barrier. An unexpected break above this would target the 4620-4630-4650 area. The strong resistance zone is 4620-4650, a key medium-term resistance level and a potential confirmation point for a trend reversal.
Trading Recommendations: Short-term core support: 4500, 4480. Strong lower support: 4450, 4400. Short-term resistance: 4553, 4562, 4573. Strong resistance zone: 4580–4590.
Long Strategy: Consider entering long positions near 4510 upon a pullback and stabilization. Set a stop loss below 4504. First target: 4520–4532 (partial profit-taking). Second target: 4543–4553 (main profit-taking). Breakout continuation targets: 4562–4573, 4580–4590.
Short Strategy: Consider entering short positions in the 4580–4590 zone. Set a stop loss above 4600, exiting on a break above. Targets: 4560–4540, 4520.
Comments