To The Moon

Forecast for Next Monday (November 2): $XAU/USD(XAUUSD.FOREX)$$Gold - main 2612(GCmain)$

Extreme Oversold Conditions and Severe Deviation from the Bollinger Bands:

On the 4-hour chart, the most recent candlestick shows an extremely violent, vertical, cliff-like drop, with the price having fallen far below the lower Bollinger Band (LB: 4099.24). The latest closing price is currently 3876.81.

This candlestick pattern, where the body is completely detached from the lower Bollinger Band, indicates extreme oversold conditions. Technically, there is a strong need for indicator correction and a return toward the lower Bollinger Band (a rebound).

Next week’s opening is highly likely to unfold in the following stages:

Immediate post-opening (inertial buying at lows or a price spike): During Monday’s early morning session, the market will likely experience a brief inertial dip or open flat at low levels as traders digest the weekend’s news. If the price stabilizes directly in the 3,850–3,870 range, do not chase short positions immediately at the opening.

First resistance level for a rebound (the dividing line between strength and weakness): 3,916

This level marks the breakout point from the previous low. Any early-week rebound that fails to reclaim and hold above 3,916 will mean the extremely weak bearish trend on the 4-hour chart remains intact; such rebounds are merely “bull traps” or opportunities for bears to re-enter positions at higher levels. The main strategy for next week should be to follow the trend and maintain a bearish outlook or remain on the sidelines. Do not blindly try to catch the bottom at the opening!