Analysis of gold trend on November 25
Analysis of gold trend on November 25
1. Market overview
On Monday in Asia, gold prices experienced a sharp correction, falling by more than $60 during the day, hitting a low of $2,658. Gold's closing price last Friday was around $2,715. It reached as high as $2,720 at the opening today, but then suffered a strong sell-off, creating greater downward pressure. The current pullback is mainly affected by the uncertainty of the situation in the Middle East, especially the discussion between Hezbollah and the United States and Israel on the 60-day armistice agreement.
Although a deal is close, market sentiment remains cautious, with the gold market reflecting this uncertainty, leading to increased price volatility.
2. Technical analysis
price trend
Gold prices have retreated from a high of $2,715 to the current $2,658, forming a more significant downward trend. From the technical chart, gold prices are still in the head and shoulders bottom pattern formed on the 4-hour chart. This pattern usually indicates that the market may reverse upward. However, the left shoulder and head position of the head and shoulders bottom pattern have been confirmed, but the construction of the right shoulder part is still in progress. Future trends need to focus on the support near $2,650.
support and resistance
Support level:
Gold's current key support level is near $2,650, which is determined based on the 618 retracement level of gold's rise from $2,535 to $2,720. In technical analysis, the 618 retracement is considered a strong support area. If the price can stabilize above $2,650, gold may still continue its upward trend.
Resistance level:
Upside resistance in the short term lies in the $2,715-2,720 area, and if gold prices can break above this level, it may continue to test higher price ranges. However, the current short-term decline remains under pressure, so caution is needed before breaking out of this range.
Pattern Analysis The current gold price trend has formed signs of a head and shoulders bottom. Despite gold’s pullback from $2,720 to the current level of $2,658, the 4-hour chart still shows the potential to form a right shoulder. If gold prices can find support near $2,650 and stabilize upward, this pattern could develop further and become a bullish reversal signal.
3. Operation suggestions
According to current technical analysis, the key support level for gold prices is near $2,650. This position determines whether gold can continue its upward momentum in the short term.
Operational suggestions:
Long strategy:
If the price of gold can stabilize above US$2,650, it is recommended to consider entering long positions near 2,650. The target price can focus on the short-term resistance range of US$2,715-2,720.
Stop loss setting:
In order to control risks, if the price of gold falls below the support level of $2,650, stop losses should be considered to avoid greater downside risks.
Short selling strategy:
If the price of gold continues to decline below $2,650 and falls below the important support range, you can consider a short-term short-term strategy, with the target looking at the support area near $2,610-2,600.
4. Summary
The current gold market has formed a key support level near $2,650, and there is still upside potential on the technical front. If gold can hold above $2,650 and break through short-term resistance, it may continue to move higher, forming a complete reversal of the head and shoulders bottom pattern. However, if the price falls further below $2,650, there are still downside risks in the short term. Investors should pay close attention to the break of the $2,650 support level and adjust their operating strategies accordingly.
1. Market overview
On Monday in Asia, gold prices experienced a sharp correction, falling by more than $60 during the day, hitting a low of $2,658. Gold's closing price last Friday was around $2,715. It reached as high as $2,720 at the opening today, but then suffered a strong sell-off, creating greater downward pressure. The current pullback is mainly affected by the uncertainty of the situation in the Middle East, especially the discussion between Hezbollah and the United States and Israel on the 60-day armistice agreement.
Although a deal is close, market sentiment remains cautious, with the gold market reflecting this uncertainty, leading to increased price volatility.
2. Technical analysis
price trend
Gold prices have retreated from a high of $2,715 to the current $2,658, forming a more significant downward trend. From the technical chart, gold prices are still in the head and shoulders bottom pattern formed on the 4-hour chart. This pattern usually indicates that the market may reverse upward. However, the left shoulder and head position of the head and shoulders bottom pattern have been confirmed, but the construction of the right shoulder part is still in progress. Future trends need to focus on the support near $2,650.
support and resistance
Support level:
Gold's current key support level is near $2,650, which is determined based on the 618 retracement level of gold's rise from $2,535 to $2,720. In technical analysis, the 618 retracement is considered a strong support area. If the price can stabilize above $2,650, gold may still continue its upward trend.
Resistance level:
Upside resistance in the short term lies in the $2,715-2,720 area, and if gold prices can break above this level, it may continue to test higher price ranges. However, the current short-term decline remains under pressure, so caution is needed before breaking out of this range.
Pattern Analysis The current gold price trend has formed signs of a head and shoulders bottom. Despite gold’s pullback from $2,720 to the current level of $2,658, the 4-hour chart still shows the potential to form a right shoulder. If gold prices can find support near $2,650 and stabilize upward, this pattern could develop further and become a bullish reversal signal.
3. Operation suggestions
According to current technical analysis, the key support level for gold prices is near $2,650. This position determines whether gold can continue its upward momentum in the short term.
Operational suggestions:
Long strategy:
If the price of gold can stabilize above US$2,650, it is recommended to consider entering long positions near 2,650. The target price can focus on the short-term resistance range of US$2,715-2,720.
Stop loss setting:
In order to control risks, if the price of gold falls below the support level of $2,650, stop losses should be considered to avoid greater downside risks.
Short selling strategy:
If the price of gold continues to decline below $2,650 and falls below the important support range, you can consider a short-term short-term strategy, with the target looking at the support area near $2,610-2,600.
4. Summary
The current gold market has formed a key support level near $2,650, and there is still upside potential on the technical front. If gold can hold above $2,650 and break through short-term resistance, it may continue to move higher, forming a complete reversal of the head and shoulders bottom pattern. However, if the price falls further below $2,650, there are still downside risks in the short term. Investors should pay close attention to the break of the $2,650 support level and adjust their operating strategies accordingly.
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