Gold Trading Strategy For Monday
Updated
🔥Dear investors, have a good weekend.
🔶Recently, everyone has been paying close attention to whether the gold bull market is over. Although the current correction is large and short-lived, from the overall increase this year, the gold price has risen by about $800, which is a record high in terms of both the increase ratio and the absolute price increase. After a long period of unilateral rise, the market's profit-taking and a large correction are reasonable.
🔶This week, gold recorded the largest weekly decline of the year, with prices falling by about $145, falling back to the 100-day moving average, and hitting the 50% retracement of the weekly upward trend. From the perspective of the correction cycle, the maximum correction time this year is three weeks, which means that there is a possibility of a rebound correction next week. However, due to the obvious current large negative line pattern, the probability of a sharp rebound in the market in the short term is low, and it is more likely to show a bottoming-out and rebound trend.
🔶The daily chart shows that gold has retraced the 100-day moving average for the first time, which is a key medium-term support area. If the gold price falls below the 100-day moving average, the bulls will face greater pressure in the future market; if it can stabilize, it is expected to continue to maintain the upward trend. Gold may enter a volatile adjustment pattern next week. On the one hand, it will correct the current round of decline, and on the other hand, bulls need to digest the recent decline. In a volatile market, the Fibonacci 0.618 position and the key double top and double bottom support and resistance levels are particularly important and need to be closely watched.
🔶The 4-hour moving average shows a short position arrangement, indicating that the market is weak and it is difficult to reverse quickly in the short term. The current gold rebound has been blocked at the 2578 line many times and is still in a state of oscillation and short position. It is expected that gold prices may still face great pressure when they rebound to the 2575-2578 range next week, and bears will dominate the market. The support below focuses on the 2530-2533 line. If it falls below this support, the bearish trend will continue further.
🔶Next week's short-term trading strategy:
🟢If the gold price rebounds to the 2575-2578 range, you can consider laying out a short position, and the stop loss reference is above 2580.
🔴If the gold price pulls back to the 2530-2533 range and stabilizes, you can consider trying a long position, and the stop loss reference is below 2530.
🔶Focus on key positions:
Upper resistance: 2578-2580
Lower support: 2530-2533
🔶In summary, gold is likely to fluctuate next week. It is recommended to respond to the market flexibly, formulate trading plans based on resistance and support levels, and pay attention to the impact of market news on short-term trends.
🙌Thank you for your Boost and shares. Please leave your comments in the comment section.
🔶Recently, everyone has been paying close attention to whether the gold bull market is over. Although the current correction is large and short-lived, from the overall increase this year, the gold price has risen by about $800, which is a record high in terms of both the increase ratio and the absolute price increase. After a long period of unilateral rise, the market's profit-taking and a large correction are reasonable.
🔶This week, gold recorded the largest weekly decline of the year, with prices falling by about $145, falling back to the 100-day moving average, and hitting the 50% retracement of the weekly upward trend. From the perspective of the correction cycle, the maximum correction time this year is three weeks, which means that there is a possibility of a rebound correction next week. However, due to the obvious current large negative line pattern, the probability of a sharp rebound in the market in the short term is low, and it is more likely to show a bottoming-out and rebound trend.
🔶The daily chart shows that gold has retraced the 100-day moving average for the first time, which is a key medium-term support area. If the gold price falls below the 100-day moving average, the bulls will face greater pressure in the future market; if it can stabilize, it is expected to continue to maintain the upward trend. Gold may enter a volatile adjustment pattern next week. On the one hand, it will correct the current round of decline, and on the other hand, bulls need to digest the recent decline. In a volatile market, the Fibonacci 0.618 position and the key double top and double bottom support and resistance levels are particularly important and need to be closely watched.
🔶The 4-hour moving average shows a short position arrangement, indicating that the market is weak and it is difficult to reverse quickly in the short term. The current gold rebound has been blocked at the 2578 line many times and is still in a state of oscillation and short position. It is expected that gold prices may still face great pressure when they rebound to the 2575-2578 range next week, and bears will dominate the market. The support below focuses on the 2530-2533 line. If it falls below this support, the bearish trend will continue further.
🔶Next week's short-term trading strategy:
🟢If the gold price rebounds to the 2575-2578 range, you can consider laying out a short position, and the stop loss reference is above 2580.
🔴If the gold price pulls back to the 2530-2533 range and stabilizes, you can consider trying a long position, and the stop loss reference is below 2530.
🔶Focus on key positions:
Upper resistance: 2578-2580
Lower support: 2530-2533
🔶In summary, gold is likely to fluctuate next week. It is recommended to respond to the market flexibly, formulate trading plans based on resistance and support levels, and pay attention to the impact of market news on short-term trends.
🙌Thank you for your Boost and shares. Please leave your comments in the comment section.
Trade active
🔶In the early Asian session on Monday (November 18), spot gold opened higher and moved higher, hitting a three-day high of $2,597.06/ounce, up more than $30 from the closing price last Friday. The tension between Russia and Ukraine intensified over the weekend, and the rising risk aversion provided momentum for the rebound of gold prices.
🔶The gold price broke through the previous range of fluctuations, and the short-term moving average gradually diverged upward, indicating that the short-term trend was strong. If the gold price stabilizes after stepping back on the key support, it is expected to usher in a second pull-up.
🔶However, the medium- and long-term moving averages still maintain a short position, and there are no signs of a turning point yet, indicating that the overall downward trend is not over. The current rebound may be a short-term correction, and the upper resistance is still heavy.
🔶Support level: Pay attention to the 2560 line in the short term. If the gold price steps back on this position and stabilizes, it may further move up to test the resistance.
🔶Resistance level: The 2600 mark above is an important resistance area. It is expected that there will be strong selling pressure near this position. It is recommended to short at highs.
🔶Short-term trading strategy
Pay attention to the opportunity of short-term layout in the 2595-2600 area, and the target below is 2560 and lower support. If the 2560 support is effective, you can try short-term long orders, and take profit at 2585-2590.
🔴Risk warning
The situation in Russia and Ukraine and other geopolitical risks still have a great impact on market sentiment, and we need to be vigilant about the disturbance of risk aversion sentiment to the short-term trend of gold.
Trade closed: target reached
In the early European trading on Monday (November 18), spot gold maintained its intraday surge. The current gold price is around $2,594/ounce, up more than $31. Driven by safe-haven buying caused by geopolitical tensions, gold prices rose rapidly after the start of Asian trading on Monday, reaching a high of $2,597.29/ounce in the Asian session. As the conflict between Russia and Ukraine escalated and tensions in the Middle East continued to ferment, safe-haven demand pushed up gold buying. These risk factors may continue to ferment in the short term, providing bottom support for gold prices. Although the US dollar index has strengthened recently, it was under pressure to adjust at a high level at the beginning of this week, and the weakening of the US dollar further increased the attractiveness of gold. Against the backdrop of the ongoing conflict between Israel and Iran, the market remains cautious about further escalation of tensions between Russia and Ukraine, prompting safe-haven funds to flow into gold.
With no important economic data released on Monday, current attention remains on the upcoming speech by Chicago Fed President Goolsbee. Geopolitical developments will also be closely watched for any significant impact on gold, a traditional safe-haven asset.
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