XAUUSD(GOLD)-Beware of Upward Breakout

Aug 20From a technical perspective, the gold market is currently in an uptrend, and bulls are waiting for the right time to push gold prices further up. On the daily chart, the relative strength index (RSI) remains above 50, indicating that although there may be a pullback in the short term, the overall trend remains bullish.

Gold prices have broken out of the symmetrical triangle pattern, and market risk appetite is still inclined to the upside. Although the 14-day RSI has retreated slightly, it still remains above 50, suggesting that short-term pullbacks may become buying opportunities. The current key support level is at 2486 (Monday's low). If the price continues to correct, the next support level will be at 2468 (previous triangle resistance level), and the psychological level of 2450 will be below. A break below 2450 will pose a major challenge to bullish sentiment.

On the 4-hour chart, the price has broken through the previous high narrow range of fluctuations. In the short term, pay attention to whether there is a possibility of pulling up again after a pullback confirmation. At present, the K-line on the hourly chart is running outside the upper track of the Bollinger Band, indicating that there may be a need for adjustment and repair in the short term. After continuous rise, the short-term moving average began to diverge downward, tending to have a short-term adjustment.

Although the bulls are still strong and broke through the 2510 mark, we maintain the view that the third quarter may rise and then fall. The current market has broken a new high, but bulls should remain cautious and pay attention to the strong resistance area of 2525-2530 above, which may be an opportunity for shorts to enter the market. After gold broke through 2510 in the European session today, focus on the resistance of the 2525-2530 range; if the rebound fails, the pullback support can be seen in the 2505-2500 range.

Aug 20

Trade active

Gold Trading Strategies Reference

🎯Strategy 1: Go Sell when gold rebounds to around 2525-2528, stop loss 6 points, target around 2510-2500, break the position and look at the 2495 line✅

🎯Strategy 2: Go Buy when gold pulls back to around 2495-2497 , stop loss 6 points, target around 2505-2515, and look at the 2525 line if the position is broken✅

✴️Strategy orders are divided into two positions at 1:2 or 1:3. The two positions shall not exceed 15% of the total position. A spare position shall be reserved. All positions shall not exceed 20% of the total position;

✴️Strategy orders change SL to the entry price when the profit is more than 3 US dollars. Unless otherwise notified, the original price shall not be re-entered;

✴️Strategy orders implement current price closing, unless there is a clear statement of pending orders or positions, the strategy is only valid for the day; overnight orders are prohibited;

⚠️The trend of the gold market is changing rapidly, and trading strategies may also be adjusted in real time. Investors are advised to place orders cautiously and manage account funds and positions reasonably.

Aug 20

Trade active

🔥Perfect! Completed 🎯Strategy 1