On December 19, the gold market exhibited a volatile session, initially declining before rebounding and then retreating again, reflecting intense tug-of-war between bulls and bears. The daily candle closed as a long-legged doji—a significant technical signal—setting the stage for today's price action.
The session opened at 4,339.8 but failed to sustain upward momentum, instead entering a downtrend that bottomed at 4,308.4. Subsequently, a strong bullish rebound pushed prices to a daily high of 4,374.7. However, momentum waned toward the close, with prices retreating to settle at 4,331.2, forming a long-legged doji with a slightly longer upper shadow.
Technically, a long-legged doji often signals temporary equilibrium between bulls and bears, suggesting an impending directional breakout. Given yesterday’s failure to hold highs and the retreat to near the opening price, resistance appears strong, indicating weakening bullish momentum. This backdrop favors a corrective move today, warranting a short-selling strategy.
For trading levels, focus on the pullback rhythm. If prices dip toward 4,300, consider entering long positions with a stop-loss at 4,290 to hedge against unexpected downside risks. Initial targets are set at 4,345, with a potential extension to 4,355 upon breakout. Monitor market sentiment and news flow closely, adjusting strategies flexibly to avoid excessive volatility risks.
In summary, yesterday’s long-legged doji provides clear short-term directional cues, with evident resistance supporting today’s bearish bias. Tracking key support/resistance levels and trading with the trend will help capitalize on market fluctuations.
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