Gold fell significantly last week, at one point very close to its previous low. The recent overly pessimistic mood may be brewing a big rebound.
Frustration has been clear to gold investors over the past few months. Interest in gold has been significantly diluted and pessimistic, which is clearly linked to the volatility of the gold market and is likely to continue for months.
But the good news is that in the 34-day cycle, the rebound signal has appeared. In the next few trading days, bulls will have the opportunity to test the top of the channel. However, this rebound still can not reverse the recent adjustment momentum, the rebound only, once again hit a low and fall below the possibility.
In terms of emotional indicators, a relatively clear bottom deviation is being formed, which will also provide impetus and support for a short-term rebound. Of course, bottoming can only be announced if it rises above 1880.
In the medium-term market, we still believe that the next few months will be a relatively volatile pattern, because there is a contradiction between the 154-day and 310-day cycles. The good news is that the larger 310-day cycle will bottom out in April-May and return to the bullish trend. The bottom of the 310-day cycle channel in the following figure will provide solid support. The long-term target area of 2212-2340.56 will not be repeated.
