Gold breaks the downtrend line

Dec 12, 2024

Gold is currently in a clear uptrend, supported by the uptrend line (green slash). This trend line reflects the medium- and long-term bullish power of the market.

At the same time, a horizontal adjustment range (blue rectangle) is marked in the figure, indicating that the price of gold has experienced a period of sideways consolidation in this range. The bottom support of this range is around 2606.39, while the top resistance is around 2674.77. The price movement that touches these levels several times shows that these price levels are of great significance to market participants.

Recently, the price of gold has successfully broken through the top of the horizontal range at 2674.77, accompanied by an increase in upward momentum. The current price is hovering around 2717.39, and the market sentiment is optimistic.

In addition, a short-term upward wave can also be seen from the figure, with an increase of about $177.34 (6.97%). After the breakthrough, the price continued to climb upward along a steeper upward channel (indicated by the dotted line), which shows that the strong bullish trend of the market continues. From the perspective of the predicted potential upside target, the price of gold may test the high of 2789.75 in the future. If the rally continues, the second target may reach 2815.55, an increase of nearly 6.94%.

If the price of gold falls back and falls below 2674.77, it may return to the horizontal adjustment range. If it falls below the lower edge of the adjustment range of 2606.39, the market trend may turn bearish, further testing the support of the long-term trend line.

Gold currently shows continued momentum after a strong breakthrough. Investors can pay attention to whether it can steadily stand above the key level of 2750 in the short term. In the context of the upward trend, the operation is mainly to buy on dips, but attention should be paid to the effectiveness of the key support area.

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Dec 12, 2024

Trade active

💡Gold hit 2720 and then weakened, forming a double top in the short term and breaking the upward trend line of the hourly line. The short-term market is weak, testing the 2700 line below.
💡Considering that there are a lot of data today. Try to avoid risks in trading. Cautious people can wait until it stabilizes and returns to the bullish trend after falling back before participating in the layout.

Dec 12, 2024

Trade closed: target reached

tradingview.com/x/dt52oGVJ/The gold market fell back quickly after breaking the trend line. The current price level is moving to test the 2686 first-line support. But we should also pay attention to the ultimate shock caused by market sentiment, which caused the price to hit 2675.