Black Monday. Tuesday's recommendations.On Monday, gold experienced another dramatic single-day drop of $200, while silver saw an even more exaggerated movement, with a daily fluctuation exceeding 18% and a maximum intraday decline of over 10%. Historically, there have been two instances of the CME raising margin requirements for metals, and each time this was followed by a sharp drop in metal prices.
Monday's low point around 4440-4445 was the bottom after a second decline and rebound. This level also marked a clear dividing line between bullish and bearish sentiment on the previous daily chart. After rising above 4440-4450, gold prices repeatedly rebounded from this level after multiple pullbacks. Therefore, a break below this range could trigger further selling pressure.
Monday's sharp decline has largely exhausted the bearish momentum, so a continued bearish outlook is not advisable for Tuesday. Short-term resistance is between 4375-4380, with key resistance at 4395-4400. Initially, focus on the 4375 resistance level. If it fails to break through by the European session, consider a small short position at that level; ideally, wait for a move above 4390 before the European session. If the price falls directly, consider going long around 4330 on the first downside. If it breaks below 4320, then consider entering around 4300.I will update more trading information in the channel.
