Midnight Trading Thoughts: Rally then pull back, continue the shorting approach

Gold Digger Old Cat | 2026.04.16

The most stable thing in trading is not chasing the market, but holding your own rhythm with a probability advantage—waiting patiently for the market to give signals, rather than getting knocked around by emotions.

From a technical perspective, the current 1-hour Bollinger Bands for gold show the bands opening up and flattening. After the price pulled back from a high near 4871, it has fallen below the middle band and is trading under pressure. Upward momentum is weakening, and the pullback rhythm is opening up. The middle band near 4822 is forming an initial ceiling. The upper pressure zone is concentrated around 4850-4870. For support, first look at the lower band position near 4790; if that breaks, it will further open up downside space.

In terms of execution, continue with the shorting approach. For short-term rebounds back to the middle band and the resistance zone above, scale in short positions in batches. The first target is the 4790-4770 range. After a break, you can look for a second target toward 4750-4730. Keep the defense unified above 4870. Entry should prioritize waiting for rebound-and-rejection signals—do not chase shorts directly. Keep positions light and staged: first build a base position around 4820-4830, then add when price rebounds into the 4850-4860 range to lower the average price. After short-term profits, reduce positions in batches; keep the base position with a protective stop-loss. If price breaks below the key support at 4790, you can continue holding; if it fails to break the support, then slightly reduce the position to handle the back-and-forth. Overall, focus on selling rebounds—do not participate in chasing longs at low levels. Trade quickly in and out to reduce the uncertainty risk of holding positions overnight.

The market has risks, and investment requires caution. The above is only a personal sharing of trading ideas and does not constitute any investment advice. The risk of trading accordingly is yours to bear.