Gold Market Analysis and Strategy 11/25Last week, gold prices opened with a steady upward momentum, rising for five consecutive days. Each day closed as a bullish candlestick on the daily chart. On Friday, gold made a significant move, breaking above the MA30 and MA20 resistance levels with a strong bullish candlestick.
From a momentum perspective, prices are expected to continue rising. Key attention should be given to the resistance zone between 2726-2737, where selling pressure is likely to emerge.
Trading Recap:
On Friday, I shared a sell signal at 2710, and later suggested closing the position near 2707 if you didn’t want to hold over the weekend. Some traders might have closed their positions at that time.
For Those Still Holding the Short Position:
Be mentally prepared to hold the position, as gold may climb further to around 2732.
Expect a Pullback:
Don’t panic, as a retracement is inevitable.
Suggested Trading Plan:
Enter a long trade at the opening price.
Close the long position around 2722-2728 to lock in profits.
Open a Short Position After the Rally:
Once prices rise to 2726-2734, begin adding short positions.
Target Levels:
I expect gold to at least retest 2707, with a probable downside target around 2678.
Risk Management:
Use stop-loss orders to manage risk effectively.
Ensure position sizes are within your risk tolerance.
Final Thoughts:
This strategy allows you to take advantage of both upward momentum and the anticipated pullback. Monitor price action closely and make timely adjustments to your positions. If you have any questions or need further guidance, feel free to reach out.
