6.8 Evening Analysis by Chen Jie
MA5 (purple line, around 4313), MA10 (yellow line, around 4362), and MA20 (red line, around 4412) are showing a perfect downward divergence. The price is currently being heavily suppressed below MA5, indicating significant short pressure, with the bulls having no power to push back.
The Bollinger Bands are widening sharply downwards, and the candlesticks are closely hugging the lower band (even piercing it). This is a classic one-sided crash channel, meaning the bearish momentum is very strong, and any bounce could be viewed as a selling opportunity.
Recently, a few candlesticks have shown lower shadows and there are signs of a potential bottom near 4268, followed by a small bullish candle that retraced to around 4326. However, this looks more like a "technical repair after a heavy drop" rather than a reversal signal. Such a bounce is typically meant to correct an excessive divergence, building up energy for the next wave down.
Trading Strategy:
Short at 4320-4330, with the first target at 4280 and the second target looking towards 4265#xau .
MA5 (purple line, around 4313), MA10 (yellow line, around 4362), and MA20 (red line, around 4412) are showing a perfect downward divergence. The price is currently being heavily suppressed below MA5, indicating significant short pressure, with the bulls having no power to push back.
The Bollinger Bands are widening sharply downwards, and the candlesticks are closely hugging the lower band (even piercing it). This is a classic one-sided crash channel, meaning the bearish momentum is very strong, and any bounce could be viewed as a selling opportunity.
Recently, a few candlesticks have shown lower shadows and there are signs of a potential bottom near 4268, followed by a small bullish candle that retraced to around 4326. However, this looks more like a "technical repair after a heavy drop" rather than a reversal signal. Such a bounce is typically meant to correct an excessive divergence, building up energy for the next wave down.
Trading Strategy:
Short at 4320-4330, with the first target at 4280 and the second target looking towards 4265#xau .