Yesterday, on Monday, gold prices fell back from their highs and entered a narrow range, switching between the upper and lower $10 range around the 2000 mark. Prices accelerated last Friday to 2010 and have remained at high levels since then.
On Monday this week, the price suppressed 2007 and fell back to the 1990 area to find support, and then rebounded from the support. Prices are currently trading within a tight range around this range.
The first support area is the 1990-1991 area and the first resistance area is the 2002 area.
Moreover, the resistance point for gold price rebound and sprint is the upper rail position of the previous green ascending channel line, that is, the 2010 area. Yesterday Monday, the price rushed to the upper track and fell back under the pressure of space correction.
What needs to be paid attention to during the correction process is the support of the lower rail.
Based on the current gold concerns, we summarize the following three points:
1. It bottomed out late last Friday and rebounded strongly. This week’s lows maintain the pace of a sharp advance.
2. Crawl around the green channel line and crouch for better sprinting. And every time you retreat, you hold the previous low point, and then sprint upward to break through the high point.
In other words, when falling, one is to hold the low, and the other is to bottom out and rise to break the high.
3. This is a grinding mentality. When you can’t stand it anymore, it’s time to start. Have a firm grasp of trading psychology and human nature.
The current green channel range is the 2020-1984 area, which is the next large spatial range that needs attention.
To narrow the range, we need to focus on last night’s sweep of the 1990-2002 area.
The price in the Asian market first stepped back to the 1990 mark, and then continued to fluctuate and rebound after confirming support in the afternoon. After confirming the support, the next step is not to fall below here again, and then the price goes up and looks for resistance in the 2002 area, and breaks through to find a high point. In the 2010 area, break through the high and look for the 2017-2020 range where the channel is on track.
Therefore, in the afternoon, I chose to go to the 1993-1992 area first. The stop loss does not need to be too large. Just use the low below 1989 as your stop. At the stop loss point of three or four dollars, watch the price rise and look for the resistance line area from 2000 to 2002.
Then carry out the second step of the plan, break through 2002, step back to the defensive low, and continue to bullish higher. If it falls back below 1990, focus on bull opportunities in the 1984-1980 area, the next support point. Defense last Friday. Fall below the 1976-1977 low, then see the bottom rebound and break through the high
The general idea is to keep the low long position unchanged, but there are more options to choose from at this point. Let’s first use 1990 as the defensive dividing line, and hold until the resistance breaks through. If we lose our position, we will continue to go long at the lows until we break out of this ascending channel
From 1995 to 1996, gold was directly long, the stop loss was 1989, and the target was 2006-2010.
The bottom touches 1984-1982, still long, stop loss 1975, target 2000
My personal opinions may not agree with everyone, but if you have any opinions, you can tell me.
