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.
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.
Trade active
Gold is falling as expected. My short position has already made a very obvious profit. Let's see where gold can fall next. I hope that gold will fall further so that our profits will be further expanded.Trade closed: target reached
Hey bros, I only made three adjustments to my trading today.1. First, when gold was in the process of retreat, I went long on gold near 3478 according to the above intraday short-term trading strategy. Although gold once touched 3470 during the retreat, it just touched 3394 again during the rebound. Although we didn't catch the high, we still seized the opportunity to close our long position near 3391, locking in a 130-pips profit.
2. As gold retreated to around 3470, I manually closed one of my planned swing trade short positions near 3480. My entry price was around 3480, effectively closing one of the short positions with the lowest entry price.Locked in a 100 pips profit;
3. Because I still believed gold could fall, after closing my long position, I immediately added a short position near 3491. Closing the short position before re-entering the short trade was simply to increase my average short entry price.
I currently hold three short positions for swing trading, with entry prices at 3493.25, 3505.16, and the just added short position at 3490.86. Gold may struggle to reach its target range of 3435-3415 in the short term, but I'm very optimistic about a pullback to 3460-3450. This area may be my first target for swing trading.
Rigorous trading, scientific investment, and compound profits! Get free trading strategies in the Telegram group: t.me/Steffen_S68
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Rigorous trading, scientific investment, and compound profits! Get free trading strategies in the Telegram group: t.me/Steffen_S68
Related publications
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.