What is risk? It's not fear or worry, but rather a lack of understanding and direction.
Adjustments during an uptrend are normal. Short-term trading isn't about the overall direction, but rather the day itself. The focus within a day is on predicting key resistance and support levels.
Since the Federal Reserve's interest rate decision, gold prices have failed to reach $3,700 for the second time, ultimately falling rapidly. The market has begun to question the rise and fear a deeper correction.
This concern is not misplaced. Gold prices have risen by $400, so mid-term adjustments are normal.
However, for gold to go from strength to weakness, it will inevitably experience fluctuations first; don't expect a sudden turn to extreme weakness.
The top always appears when the market is buzzing! From this theoretical point of view, 3,700 isn't too high.
From the 2-hour chart, gold prices saw a breakout, reaching a new high of 3,728 before retracing. Currently, support at 3,708 is the target. If it falls below, the target is 3,697, the starting point of this rally.
Gold strategy: fall back to the 3700 line, light long position, target 3725, continue to hold if it breaks through.
Adjustments during an uptrend are normal. Short-term trading isn't about the overall direction, but rather the day itself. The focus within a day is on predicting key resistance and support levels.
Since the Federal Reserve's interest rate decision, gold prices have failed to reach $3,700 for the second time, ultimately falling rapidly. The market has begun to question the rise and fear a deeper correction.
This concern is not misplaced. Gold prices have risen by $400, so mid-term adjustments are normal.
However, for gold to go from strength to weakness, it will inevitably experience fluctuations first; don't expect a sudden turn to extreme weakness.
The top always appears when the market is buzzing! From this theoretical point of view, 3,700 isn't too high.
From the 2-hour chart, gold prices saw a breakout, reaching a new high of 3,728 before retracing. Currently, support at 3,708 is the target. If it falls below, the target is 3,697, the starting point of this rally.
Gold strategy: fall back to the 3700 line, light long position, target 3725, continue to hold if it breaks through.
Trade active
Gold's strong upward momentum at high levels is evident, and going with the trend is much easier than trading against it. The hourly K-line chart shows that the market is currently consolidating to digest the gains from the rise, with the short-term lows of the fluctuation gradually shifting higher. A slight pullback to 3720 could be an opportunity to open a light long position. Set the stop loss at 3710, with a target of 3740.Trade closed: target reached
It's a bit unfortunate that gold pulled back to a low of 3623, just missing the mentioned 3620 level, before rallying directly to a high of 3639. Those who entered positions may consider taking profits and exiting now. Those who haven’t bought can wait and observe for the time being, watching for a breakthrough around the 3940 level before seeking opportunities to participate.
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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.
Join my telegram channel for free- t.me/GoldBitcoinSharing Want receive more profitable signals for Crypto & Forex market, write me
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.