How should gold be traded tomorrow?
On Friday, gold rose directly by more than $70 during the US trading session, closing around $1990, from its position around $1920 earlier in the day. During the US trading period, global stock indices fell across the board, with European and American stock markets experiencing continued declines. As a result, a large amount of safe-haven funds entered the gold market, ultimately leading to gold being the only asset that rose significantly. This has become the first "black swan" event since 2023. Gold rose significantly in the first period due to a surge in safe-haven buying, starting from $1810 and closing at $1870.
The second period of the rise began this week from $1870 and rose by nearly $200, which exceeded expectations. Many people thought that it had reached its peak, but it continued to break new highs. All of this is due to the market's chain reaction caused by the European and American banking crisis.
Judging from the 4-hour chart, gold is not overbought, but the price is much higher than the moving average, indicating that it needs to be adjusted. Meanwhile, the 20-period SMA has gained upward momentum, breaking above the 100-period SMA, which also edged higher. Overall, it is recommended to be bullish on gold on Monday, but not to chase the rise. Theoretical bulls are near the 1960 support, which is expected to be difficult to reach. It is safer to short near 2000, and it may be seen that it will open flat or slightly higher on Monday. Take profit can be set around 1975.
It is not to say that if the price rises too much, it must be the highest point, and if it is bullish, it will blindly chase the rise. It's not that the deeper you fall, it must be the lowest position.There is no market that only goes up but not down, and there is no market that only goes down but not up. If you blindly grasp the top and bottom and trade without careful consideration, you will suffer heavy losses.
Trading requires flexibility to respond to changes in market direction. If the market direction changes, you need to adjust your thinking quickly. Because prices are determined by the market, not by our forecasts. What we need to do is do our trading well.
When the market reached 1930 last week, the position had passed the previous high. Many friends predicted that this was the top, so they started shorting gold. I also tried shorting around 1930, some took profits around 1918, and some stopped losses when the resistance of 1933 was broken. After the stop loss, I started to go long, and took a profit around 1948. When it rose to the previous high of 1958, I shorted it again. As a result, it directly pulled up and broke through. When the resistance level in 1960 was broken, I stopped the loss. After the stop loss, I chose to go long again, and took a profit around 1975, which shows that there is no problem with the transaction itself. What matters is how we deal with our mistakes.
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Trade active:
Gold steps back on support and rises again
Comment:
In the 1-hour chart, the inflection point is very accurately marked for everyone. Now the market is rising, waiting for the breakthrough of the 2000 resistance level, I will continue to update the trading strategy, please check it at any time
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Gold Breaks 2000 Resistance Level
Comment:
go long
Trade active:
Comment:
It fell below the support near 1956 today, and gave a short-selling strategy in time. Congratulations to the friends who kept up, and made a lot of money today