Gold technical analysis, May 5-6📊Today, gold once again showed strong performance, rising rapidly during the session, breaking through the previous shock consolidation range, and basically no obvious correction, directly rising to the expected first target of 3310, and the strong market fulfilled the risk aversion expectations. However, it should be noted that once the risk aversion sentiment is released in the short term, the market is often accompanied by a rapid decline after the surge, so it is not suitable to blindly chase the rise at this stage.
📊The 1-hour moving average system began to turn, indicating that the short-term bullish momentum has weakened;
🔰The current price is approaching the previous strong resistance area (3328-3330), which is an important starting point for the previous round of decline;
🔰From the perspective of the fluctuation rhythm, this round of rise has basically not made a decent retracement, so the bulls are already in a high-risk range;
🔰Before there is an effective consolidation or retracement confirmation, the risk of chasing more is high, and the short-term is more inclined to a correction.
🔴Upper resistance: 3328-3330, if this area is repeatedly blocked, you can try to intervene with short orders;
🟢Lower support: 3260-3252, if it pulls back to this area and stops falling and stabilizes, you can consider participating in long orders.
✅If the gold price continues to be under pressure in the 3325-3330 range during the U.S. market, short orders can be placed first, with the target looking at the 3270-3260 area, and the stop loss is recommended to be set above 3335; if there is a rapid retracement and cannot break 3252, you can still consider going long in the future to win a new round of rise.
✅The short-term rhythm of gold is fast, and it is greatly affected by the news. The market may have a unilateral trend of "breaking through but not falling back". Therefore, it is necessary to make flexible adjustments according to the actual strength of the market, and do not blindly chase the rise or fall.
