XAUUSD: Don’t chase the rise, beware of the pullback
Updated
As expected, gold broke through above 2700 points, reaching a new all-time high of 2714, which coincides with our bullish direction during this period.
Unfortunately, the price of gold started to rise every time without falling back to the support level, so I missed the rise the day before yesterday and yesterday.
Although I missed the profit of this wave of rise, I don’t regret it. The direction and strategy are correct, but the correction of the gold price did not reach my predetermined target.
Today I will still resolutely implement my strategy. If it does not pull back to the support position, I will definitely not chase the rise.
The higher the price is, the more cautious it should be, because once the correction starts, the decline will be very large.
Therefore, don't be carried away by the rising enthusiasm. As Buffett said, I am afraid when others are greedy.
Back to the topic, from the combination of the current rise in gold prices and the previous history, I believe that the high point of this rise will be near the 2715-2720 area, so there is not much space above, so don’t blindly chase the rise.
But looking at the general direction, I think the rise in gold prices is not over yet, and it needs to retrace before it can continue to rise.
For the lower support, we can refer to the two previous highs of 2695-2685
Among them, 2685 is the 0.382 position of the Fibonacci retracement of this rise. If it falls below 2685, the amplitude of the retracement will increase.
Combining the above information, I think it is possible to short in the 2715-2720 area and long in the 2695-2685 area today.
To prevent accidents, if these two areas are effectively broken, this view can be overturned.
Unfortunately, the price of gold started to rise every time without falling back to the support level, so I missed the rise the day before yesterday and yesterday.
Although I missed the profit of this wave of rise, I don’t regret it. The direction and strategy are correct, but the correction of the gold price did not reach my predetermined target.
Today I will still resolutely implement my strategy. If it does not pull back to the support position, I will definitely not chase the rise.
The higher the price is, the more cautious it should be, because once the correction starts, the decline will be very large.
Therefore, don't be carried away by the rising enthusiasm. As Buffett said, I am afraid when others are greedy.
Back to the topic, from the combination of the current rise in gold prices and the previous history, I believe that the high point of this rise will be near the 2715-2720 area, so there is not much space above, so don’t blindly chase the rise.
But looking at the general direction, I think the rise in gold prices is not over yet, and it needs to retrace before it can continue to rise.
For the lower support, we can refer to the two previous highs of 2695-2685
Among them, 2685 is the 0.382 position of the Fibonacci retracement of this rise. If it falls below 2685, the amplitude of the retracement will increase.
Combining the above information, I think it is possible to short in the 2715-2720 area and long in the 2695-2685 area today.
To prevent accidents, if these two areas are effectively broken, this view can be overturned.
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The gold price just touched 2720, but did not effectively break through this position. I have already shorted it.
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