On Monday (March 24) in the early Asian session, spot gold fluctuated in a narrow range around $3,025/oz. The market was caught in a tug-of-war under the support of the strengthening of the US dollar and safe-haven buying. Last Friday, the price of gold fell by 0.7%, and once tested the key psychological level of $3,000 during the session, but finally closed at $3,023.04/oz, recording a weekly increase of 1.17%, achieving a third consecutive week of increase.
Technical analysis:
Daily level: As expected, the price of gold formed a head and shoulders top pattern last week and fell back to the theoretical target of 3,000, but the weekly closing showed that the bullish momentum has not been fully released, and there is still a possibility of an upward surge this week. At present, we need to pay attention to the support of the 10-day moving average (2995) and the daily middle track (2952). If it stabilizes after a pullback, it is expected to continue the upward trend. In addition, after two consecutive negative lines at high levels, we need to be alert to the rebound of the big positive line. If the "big positive front resistance line" pattern is formed, it may trigger a staged top signal, causing the market to fluctuate and wash repeatedly.
4-hour level: The gold price fell from the high of 3057 to 2999 and then bottomed out and rebounded. The current trend belongs to the correction stage in the upward trend. Last Friday, after the big negative decline, the late trading rebounded. Whether the correction ends depends on the subsequent K-line pattern: If the rebound continues and forms three consecutive positive lines, the upward trend is expected to restart; if it turns negative and breaks below the 3000 mark, the correction may continue and further test the 2995-2980 support area.
Operation strategy:
Short-term rebound high altitude is the main focus, focusing on the 3035-3040 resistance area. If under pressure, you can try short orders, stop loss above 3045, and target 3010-3000.
The callback is supplemented by low longs, pay attention to the 3005-2995 support zone, and after stabilization, you can try long with a light position, stop loss below 2990, and target 3020-3030.
Overall, gold may maintain a shock consolidation in the short term, and it is necessary to pay close attention to the breakthrough of the 3000-3040 range, which will guide the next direction after the break.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.