Gold rebounds and rises
The price of gold fluctuates within the rising channel. The lower and upper rails of the hourly channel are the fluctuation boundaries of the price. At present, the price of gold has touched the upper rail of the rising channel and has retreated, which means that the market may have the opportunity to reverse or continue to rise when approaching important technical levels. The formation of the rising channel shows that the market sentiment is relatively optimistic and the long-term upward trend of gold is still intact.
Short-term resistance level: Gold is currently close to $2,903.42, which has become a short-term technical resistance. If the price can break through this resistance and stay above it, gold may continue to rise towards the target area of $2,911.08. After breaking through this point, the price of gold will likely test higher prices.
Support level: The support areas below are at $2,884.12 and $2,857.62 respectively. If the price of gold pulls back to these support ranges, the market may get support and rebound, especially when approaching the lower rail of the rising channel. If the price falls below these support levels, it may face a deeper adjustment.
After each rise in the gold price within the channel, the price will make a certain degree of correction, and this pattern may continue. The current retracement may be a precursor to the price preparing to break upward again. If gold breaks through the existing resistance range, the upward momentum will continue to be strong.
From a technical point of view, the upward trend of gold is still intact, but it may face certain shock corrections in the short term. If gold breaks through the resistance area of 2,900 US dollars, it may continue to rise and challenge the target price of 2,911.08 US dollars. However, if the price fails to break through and starts to pull back, investors can pay attention to the support area below, especially $2,884.12 and $2,857.62, which are key areas for gold price rebound.
Short trading strategy: Gold rushes to the 2910-2915 area under pressure and short orders are arranged, and the upper defense is 2925. Downward targets are 2895 and 2984.
Long trading strategy: Pay attention to the long order arrangement under the support of the 2984-2980 area below, and defend 2970 below. Upward targets: 2910, 2930
Trade active
Recently, both the long and short sides of gold have shown extreme performance. The longs rose to 2942 in the continuous rise, and the shorts also fell sharply to 2862, with a range close to 80 US dollars. Even if the CPI data was negative, it did not continue to fall, but rose sharply again in the US market. This is the trend effect.
The price of gold opened low last night and continued to rise, forming a V-shaped reversal, and returned to the bullish upward channel of the trend line again. From the overall trend, the price rebounded after falling from 2942 to 2863. Although it broke once during the session, the consolidation time was very short. The adjustment after this round of sharp rise lasted only less than 2 trading days. The gold price once again stood firm on the moving average support and continued to rise. Pay attention to the support of 2900 below, and pay attention to the turning point of the previous day's second big drop below the low of 2930 US dollars above resistance;
Today's plan to rebound to 2935-2930 short, stop loss 2940. Target 2915-2910; pullback to 2905-2900 long, stop loss 2890. Target 2920-2930
Trade closed: target reached
From a technical perspective, the current gold bulls have stopped at 2922, and there is a large room for further growth. Even if a new high is reached, it will only be a small increase.
After the Asian session closed, the price continued to be weak, and it is expected that the European session will show a weak adjustment.
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t.me/+tU_47UhRKa4yMmRh
✔️Real-time analysis of foreign exchange, gold, and Bitcoin
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✔️Real-time trading guidance
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.