Today, after gold touched around 3437 during the retracement, it was pushed up to around 3490 again by market sentiment. The bullish momentum was extremely strong and it is currently in a strong bullish trend. According to the current gold trend, there may be room for continuation above. However, in the transaction, I have made it clear that I will no longer aggressively chase the rise of gold!
First, gold has risen sharply under the influence of fundamentals, and it is difficult to follow up in time on the technical level, resulting in a technical pullback demand for gold; in addition, gold has shown obvious signs of acceleration during the rise, and the market often easily has turning points after acceleration, and although gold is in an obvious bullish trend, it is still under considerable pressure before breaking through the previous high of 3500. These are the reasons why I am unwilling to continue chasing the rise in gold. The most important point is that since the market expectations of interest rate cuts have increased, a large amount of buying has appeared to push up gold prices before the Federal Reserve announced the interest rate cut. It is very likely that the phenomenon of "buying expectations and selling facts" will occur.
Therefore, in the current transaction, I do not advocate continuing to chase gold at high levels. On the contrary, in the 3475-3495 area, I will consider creating as many short positions as possible as a swing trade, and be ready to welcome gold to retreat to the 3435-3415 area at any time.
Of course, because swing trading requires a certain period of time, we can still participate in intraday short-term trading during the execution of swing trading, follow the mainstream trend and try to go long on gold with the support area. The support area we must first pay attention to is in the 3460-3450 area. If gold first touches this area during the retracement process, we can consider going long on gold in intraday short-term trading.
GOLD XAUUSD GOLD XAUUSD XAUUSD
First, gold has risen sharply under the influence of fundamentals, and it is difficult to follow up in time on the technical level, resulting in a technical pullback demand for gold; in addition, gold has shown obvious signs of acceleration during the rise, and the market often easily has turning points after acceleration, and although gold is in an obvious bullish trend, it is still under considerable pressure before breaking through the previous high of 3500. These are the reasons why I am unwilling to continue chasing the rise in gold. The most important point is that since the market expectations of interest rate cuts have increased, a large amount of buying has appeared to push up gold prices before the Federal Reserve announced the interest rate cut. It is very likely that the phenomenon of "buying expectations and selling facts" will occur.
Therefore, in the current transaction, I do not advocate continuing to chase gold at high levels. On the contrary, in the 3475-3495 area, I will consider creating as many short positions as possible as a swing trade, and be ready to welcome gold to retreat to the 3435-3415 area at any time.
Of course, because swing trading requires a certain period of time, we can still participate in intraday short-term trading during the execution of swing trading, follow the mainstream trend and try to go long on gold with the support area. The support area we must first pay attention to is in the 3460-3450 area. If gold first touches this area during the retracement process, we can consider going long on gold in intraday short-term trading.
GOLD XAUUSD GOLD XAUUSD XAUUSD Trade active
Gold is still under pressure before breaking through the previous high of 3500, so we cannot be overly bullish on gold. Moreover, if gold cannot even hold steady at 3480 in the short term, it may further weaken the bullish sentiment in the market, and gold may start a correction!I currently still hold a short position in gold. I am still optimistic about the gold pullback and hope that gold will pull back as expected and bring us huge profits.
Trade closed: target reached
Good morning, bros!Gold has just broken through the 3500 level and continued to near 3509. Bullish momentum is strong. Currently, gold has significantly deviated from technical indicators and is driven entirely by market sentiment. However, from a trading perspective, it's difficult to easily find a suitable entry point to participate in a long gold trade.
However, since yesterday's 3480 level, I've been increasing my short positions in gold and planning swing trading. Although there has not been a decent pullback yet, there are still reasons to support my shorting of gold!
1. While prices above 3500 have broken through historical highs, this is still uncharted territory, and bulls may be more cautious and hesitant.
2. Market expectations for a rate cut are currently growing, but after the Fed implements the cut, gold could experience a significant pullback, creating a "buy the expectation, sell the reality" phenomenon.
3. Although sentiment is currently driving the market, and technical indicators are completely distorted, there's still room for a technical pullback once market sentiment returns to rationality.
4. Based on current signs, gold may be accelerating towards its peak.
These are the reasons why I'm continuing to increase my short positions in gold. As a swing trade, while the holding period may be extended, my target for the short position remains firmly in the 3435-3415 range. If gold breaks below this range, the trend could extend to 3400-3390.
Of course, during swing trades, the longer holding period doesn't prevent us from executing short-term, daytime long trades. For short-term, daytime long trades, the current support area worth watching is 3485-3475. We can wait for gold to retrace to this area and then participate in gold long trades.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.