Gold enters the overbought zone, you can short it on ralliesGOLD (US$/OZ)TVC:GOLDMatthew_8888Why is gold so strong? Ultimately, it's driven by multiple factors: the Federal Reserve entering a cycle of rate cuts, financial and trade factors, and war. However, this doesn't mean gold won't need a short-term correction! Large cycles provide directional guidance, while smaller cycles determine the rhythm. Yesterday, the gold market completed its final formation for September. After a strong, volatile rally at the beginning of the month, it broke through multiple round numbers, reaching a record high of 3872 in late trading before consolidating. The monthly line finally closed at 3858, forming a large, saturated bullish candlestick with a slight shadow. This monthly gain of over $400 is primarily due to the Federal Reserve's initiation of a new round of rate cuts against the backdrop of poor US data, which heightened market risk aversion, and the intensified conflict in the Middle East and between Russia and Ukraine. This strong upward trend has led to a strong upward trend. While this large bullish candlestick has the technical potential to continue its upward trend, a rapid short-term rise can also lead to a technical divergence. If the market continues to rise without adjustment and encounters resistance, it can easily lead to profit-taking. As mentioned before, the increase this time has exceeded 500 US dollars, which has entered our risk zone. Technically, it has deviated from the pattern and entered the overbought zone. Most people in the market are bullish now, but I think the benefits of chasing the rise now are greater than the risks, and there are still opportunities to make profits by shorting gold. So today we are still considering shorting gold on rallies. Resistance: 3872, 3893 Support: 3843, 3812 If you don't have a detailed trading plan for gold, follow my updates. I'll update my strategies and ideas daily for your reference, helping you avoid detours on your trading journey.