Digger Old Cat: Gold Midnight High-Altitude Strategy Unchanged, Stepped Layout Waiting for Pullback

After the opening of spot gold today, it briefly surged to 4466.39 and encountered resistance, then declined with oscillations. The intraday low tested 4407.80, currently trading around 4449.40, presenting an overall weak pattern of surges followed by pullbacks.

On the news front, the market's game around Fed rate cut expectations continues, with the resilience of some economic data weakening the urgency of rate cuts, pushing the US dollar and Treasury yields to rebound, putting pressure on gold. Meanwhile, improving global risk sentiment has also weakened gold's safe-haven buying demand, together constructing a bearish environment.

From a technical perspective, looking at the 5-minute chart, after price formed obvious resistance in the 4460-4470 range and pulled back, bearish forces dominated. The Bollinger Bands opened downward, with price running near the lower rail. Short-term moving averages show bearish arrangement, indicating a clear bearish bias currently with weak rebound strength, providing technical support for the high-altitude short strategy.

In terms of trading strategy, we adopt a stepped high-altitude approach, using small stop-losses to capture large profits, with the midnight strategy continuing unchanged in the short direction. The first batch of short entry zone is placed around 4455-4459 with stop-loss set at only 3-5 points at 4464, targeting 10-20 points toward 4439, if broken then continue lower to 4429. If price rebounds to the 4468-4472 range, this is the second tier where we can continue adding short positions, stop-loss similarly at 4475, targeting the 4458-4453 area. If rebound reaches the 4498-4502 range, this is the third tier where we can layout shorts again, stop-loss at 4505, target 4488-4478. Through this approach, we disperse overall risk while amplifying potential returns.

The content of this article is for reference only and does not constitute any investment advice. Investment involves risks; please exercise caution when entering the market. Investors should make independent decisions based on their own circumstances and bear all risks accordingly.