Gold Technical Analysis and Trading StrategyGold Technical Analysis and Trading Strategy
🎯 Core Logic
Gold is currently maintaining an upward trend on the daily chart. The strategy is to follow this main trend and establish long positions based on key technical support areas. After reaching a new high, the price is undergoing a normal pullback and is currently testing the 4160-4165 range. This area represents a previous breakout platform and a short-term support/resistance level, forming initial support.
If the price retraces further, the 4140-4150 area will become the core defense line for the bulls. This range is supported by multiple technical indicators, including:
✨ Fibonacci 50% retracement level
📊 Daily moving averages
🌐 Bollinger Band middle line
When the price retraces to this level and shows signs of bottoming out, it is considered an ideal opportunity to add to positions!
💡 Trading Plan
🎪 Entry Area:
Initial long position with a small position size on the first pullback to 4160-4165.
Add to the long position on a pullback to the 4140-4150 range.
🛡️ Risk Management:
Stop-loss is set uniformly at 4136, located at the lower edge of the core support zone, effectively controlling risk.
🎯 Target Area:
Initial target is the previous high resistance level of 4200-4205.
Hold the position after a valid breakout, with further upside potential.
⚖️ Overall Assessment
This strategy is a trend-following trading plan. In an uptrend on the daily chart, positions are placed in batches at strong support levels, with clear risk boundaries and a reasonable risk-reward ratio. The effectiveness of the short-term bullish structure will be determined by whether the key support zone holds.
