GOLD: A head and shoulders top is about to form?
When it comes to investing, don't expect everyone to understand you. Even if you do well, not everyone will like you, and even if you do a lot, not everyone will approve. After all, others care about the results and not the difficult process you went through. The same mouth can say different things, the same eyes can see different perspectives, and the same heart can have different thoughts. People can only do their best and have confidence in themselves. We need to understand that the investment market does not sympathize with the weak and does not believe in tears. Like a hawk soaring in the sky, it doesn't need applause. Like a blade of grass growing in the field, it doesn't need anyone's pity. Like a wildflower blooming in a deep forest, it doesn't need anyone's admiration. When it comes to doing things, we don't need to make others understand us; we just need to do our best. When it comes to investing, we don't need to seek others' approval; we just need to be true to ourselves. In trading, we need to have integrity and treat others with kindness.
Fundamentals
On Monday, spot gold retreated from its two-and-a-half-week high earlier in the day due to approaching risk factors such as Powell's speech and non-farm payroll data, while the US dollar index fluctuated downward. The yield of the US 10-year Treasury bond showed a V-shaped reversal, and the US market rebounded to recover the intraday decline. In addition, a global benchmark loan rate, the 3-month US dollar Libor, surpassed 5% for the first time since 2007.
Currently, looking at the hour chart of gold:
technical side
Gold failed to break through 1860 on Monday and continued to decline. It has now fallen below the key support level of 1845.
1845 is a key support and resistance level that marks a turning point. Currently, with the break below 1845, it is highly likely that the market will move towards the support level of 1830.
Originally, gold was following a wave-like rhythm, with 1845 marking the top of wave one. If gold is to continue its upward momentum, 1845 must not be breached. However, with the current break below 1845, the wave-like rhythm is no longer applicable.
Therefore, it is highly likely that gold will form a head and shoulders pattern, with a decline to the 1830 support level, a rebound to 1845 to form the shoulder, and then a direct drop below 1830.
Furthermore, the 4-hour chart of gold has already shown a sequence 6, indicating a high probability of further decline.
On Sunday, I gave a bearish view on gold for this week, which has proven to be accurate. You can refer to this article, which I believe will be helpful to you.
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Trading strategy:
Currently, it is recommended to open a short position at 1845-46, with a stop loss at today's high point of 1852, and a target of 1830.
GC1!
GOLD1!
XAUUSD1!
Fundamentals
On Monday, spot gold retreated from its two-and-a-half-week high earlier in the day due to approaching risk factors such as Powell's speech and non-farm payroll data, while the US dollar index fluctuated downward. The yield of the US 10-year Treasury bond showed a V-shaped reversal, and the US market rebounded to recover the intraday decline. In addition, a global benchmark loan rate, the 3-month US dollar Libor, surpassed 5% for the first time since 2007.
Currently, looking at the hour chart of gold:
Gold failed to break through 1860 on Monday and continued to decline. It has now fallen below the key support level of 1845.
1845 is a key support and resistance level that marks a turning point. Currently, with the break below 1845, it is highly likely that the market will move towards the support level of 1830.
Originally, gold was following a wave-like rhythm, with 1845 marking the top of wave one. If gold is to continue its upward momentum, 1845 must not be breached. However, with the current break below 1845, the wave-like rhythm is no longer applicable.
Therefore, it is highly likely that gold will form a head and shoulders pattern, with a decline to the 1830 support level, a rebound to 1845 to form the shoulder, and then a direct drop below 1830.
Furthermore, the 4-hour chart of gold has already shown a sequence 6, indicating a high probability of further decline.
On Sunday, I gave a bearish view on gold for this week, which has proven to be accurate. You can refer to this article, which I believe will be helpful to you.
Trading strategy:
Currently, it is recommended to open a short position at 1845-46, with a stop loss at today's high point of 1852, and a target of 1830.
GC1!
GOLD1!
XAUUSD1!
Trade active
Trade active
Trade closed: target reached:
Powell is about to speak, gold has reached the 1830 take-profit point, friends who have orders pay attention to profit-taking
Trade closed: target reached:
1830 stop profit has arrived, pay attention to profit taking, waiting for a new strategy
Trade closed: target reached:
Now enter the long order, the target is 1845.
Trade active
Trade closed: target reached
Trade closed: target reached
Trade active
