Gold Trend Analysis - October 9th

Updated

Last Friday, during the U.S. trading session, the main players completed the accumulation of long positions in gold at 1810-1815 zone. In today's Asian trading session, there was a gap-up opening, with a volume gap between 1845 and 32. Whether looking at the daily, 4-hour, or 1-hour timeframe, the market sentiment is bullish, indicating a favorable outlook for trading gold. The plan is to go long on gold, with entry points at the low levels of the Asian and London sessions. If those levels are breached, a long position can be taken in the 1830-35 range, with a stop-loss at 1828. It is expected that the bullish trend will reach the 1880 range.

Note

Up to now, the order flow lacks the momentum to break through 1870.

Caution should be exercised regarding a potential direct decline in the US session and subsequent gap filling, followed by a rise. Support levels are at 1855, 1845, and 1835. If a short-term long position is taken today, the target range is set at 1865 to 1870.

The stop-loss level for a medium-term long position entered at a price below 1815 is 1823, with the target still being 1880-1900.

Today, it is also possible to consider a short position, especially if there is a direct rise in the US session, in which case a short-term short position can be taken at 1865/1870, with the target being the low point of the London session. If the decline continues, the target level is 1835.

Trade active

NY session seems selling, longs above 1830 shall close here at 1870-75 zone.

Note

During the U.S. trading session yesterday, gold appeared to simulate a downward movement, and this trend continued from yesterday's London close until today's U.S. session, showing a short squeeze situation. The market is waiting for the exhaustion of short positions before a further decline. Pay attention to the resistance levels around 1885/1890, and if there is a breakthrough, focus on 1900.

Trade closed: target reached

judyco

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