2.27 Gold Trading Analysis Strategy

2 days ago

Gold prices were largely flat on Wednesday (February 26) after falling to a one-week low in the previous trading day. Uncertainty caused by US President Trump's tariff plan has suppressed risk appetite and boosted demand for safe-haven gold. Earlier, it fell more than 2% on Tuesday, once losing the 2,900 mark and hitting a low of around $2,888, mainly due to a weak US consumer confidence report. Gold's weakness is mainly due to the sell-off in US stocks. As stocks fall, financial conditions become more tense, especially with the Fed's aggressive policies. The problem is that economic data is currently weak and inflation expectations are rising. Markets may be concerned that if the economy slows, the Fed may not cut rates quickly while inflation remains above target and long-term inflation expectations remain elevated. This is the growth panic risk, and the market has expected downward pressure on gold given the excessive long positions in the gold market.

Gold Market Trend Analysis:

Gold Technical Analysis: From the daily level, the technical indicators of the gold market show a clear divergence and are in a serious overbought range. According to the principle of technical analysis, the market has a strong demand for adjustment. Against this background, the price of gold fell sharply on Tuesday. At present, the price of gold has effectively fallen below the support of the short-term moving averages MA5 and MA10, and today's opening price is below these two moving averages. And it has turned into strong resistance, thus pushing the price of gold to continue its downward trend. Technically, it also needs to be judged by the combination of closing lines at the weekly and monthly levels, so it is temporarily regarded as a normal correction cycle, and this correction cycle is triggered by the current small double top.


After the gold 1-hour high top structure, it fell and broke. Our team has been bearish on gold for the past two days. The rebound is an opportunity for shorts. Gold has now begun to form counter-pressure at 2920. Gold rebounded below 2920 in the US market and continued to go short at highs. The current short-term moving average MA5 and MA10 have two pressure levels of 2925 and 2930. If the gold price can rise strongly and break through the above resistance area, then today's adjustment will only be short-lived, and gold will continue to rise. If there is no breakthrough, then gold will most likely continue to fall. Focus on the support strength near the low point of 2888. Once this point is lost, it may trigger a further decline in the gold price. On the whole, our professional and senior gold analyst team recommends rebounding shorting as the main strategy and callback longing as the auxiliary strategy. The short-term focus on the upper side is the 2920-2930 line of resistance, and the short-term focus on the lower side is the 2888-2890 line of support.

2.27 Gold Operation Strategy Reference:

Short Order Strategy:
Strategy 1: When gold falls back to around 2920-2925, go short (SELL ) with a stop loss of 8 points, and the target is around 2900-2895. If it breaks, look at the 2890 line;

Long Order Strategy:
Strategy 2: When gold falls to around 2888-2890, go long (BUY) with a stop loss of 8 points, and the target is around 2900-2910. If it breaks, look at the 2920 line;

yesterday

Trade active

Gold's 1-hour moving average continues to cross downwards and the short positions are arranged and divergent. Gold still has room to fall. If gold rebounds, it will continue to be short. Gold 2920 has now become a strong resistance. Gold can be shorted near 2898 when it rebounds. The market is changing rapidly. Gold has obviously weakened in the past two days and fell when it rebounded. Then gold shorts will still have a chance and gold will continue to be short after it rebounds. Therefore, in terms of operation, since the market chooses to break below, waiting for the market to further accelerate the plunge, it is not impossible for the US market to fall to 2850! Overall, our professional gold analyst team recommends rebounding shorting as the main strategy for short-term gold operations today, and callback longing as the auxiliary strategy. The short-term focus on the upper side is the 2900-2910 line of resistance, and the short-term focus on the lower side is the 2850-2860 line of support.

yesterday

Trade closed: target reached

Gold will most likely fluctuate in a weak position during the day, but it is also possible to rebound and test the pressure first. The upper side focuses on the pressure of 2890-2895, and the lower side focuses on the competition around 2865-2860. Once this position is lost, the short-term downward space of gold will inevitably be torn apart. Therefore, in terms of operation, the main line of gold during the day is still to short and try short-term shorting at a high point. Overall, our professional gold analyst team recommends shorting on rebounds as the main strategy for short-term gold operations today, supplemented by long positions on pullbacks. The upper short-term focus is on the resistance of 2895-2900, and the lower short-term focus is on the support of 2860-2855.