Gold Trading Strategy For Next Monday

📊Gold fluctuated violently on Thursday and Friday this week, with the market showing a fluctuating pattern of sharp rises and falls for two consecutive days, and the difficulty of trading increased significantly. In particular, the strong rise on Thursday and the rapid give-up of gains on Friday caused both bulls and bears to suffer repeated torture in the short term. The rhythm of the current market has changed, showing the characteristics of "no continuation every other day and lack of entry opportunities during the trading session", and more cautious operations are required.

1. Market Review and Technical Structure Analysis
📊On Friday, gold continued to fall sharply after hitting Thursday's high of 3252, with the daily line closing with a large real negative line, a drop of nearly $100, and fell to 3152 to stabilize. This position is exactly the 0.786 retracement of the previous 3120-3250 increase, and the technical support effect is evident.

📊On the hourly chart, the continuous rise of positive lines on Thursday showed obvious bullish trend momentum, while on Friday, a continuous oscillation and decline pattern was formed, showing a typical V-shaped reversal-top-building and decline trend. At present, the price of gold has fallen to the vicinity of the lower track of the previous channel and has gained initial support in the area of ​​3152. There is a high probability that there will be a second bottoming process in the future, and it may even set a new low to form a "secondary low point" to test the strength of buying.

2. Analysis of key technical prices
🔴The upper resistance level: 3230-3250, which is the previous high pressure zone. If the short-term bulls cannot stand above this range, it will be difficult to reopen the upward space. The 3210-3212 line below it is an important short-term counter-pressure position. If the rebound is blocked here, it will continue to confirm that the shock pattern has not been broken.

🟢Support below: 3150-3120, of which: 3152 is the 0.786 retracement level, which is also the key support point in the previous period; 3140-3120 is the support range of the lower track of the channel. If it effectively falls below this area, it will open up further room for decline to 3080-3050.

3. Market trends and trading strategies next week
🟠Main idea: Treat it as range oscillation, mainly long on pullbacks, supplemented by short on rebounds.

🔶Short-term long order strategy:
🔰If the gold price falls back to the 3150-3140 area and stabilizes, you can consider entering long orders at a low level;
🔰Conservatives can wait for the gold price to confirm that it is above 3153 before entering the market;
🔰Stop loss is recommended to be set below 3142. This position is a key defensive position. If it is lost three times, it will no longer be a bottom-fishing.

🔷Short-term short order strategy:
🔰If the gold price rebounds to 3210-3212 or 3230-3250 and encounters resistance, you can try to short with a light position;
Note that short positions are only used as a means of game play at the top of the shock, and be careful of "forced short pull-up" during the rebound.
🔰The mid-term thinking remains unchanged: the mid-term long positions deployed in the 3120-3140 line in the early stage continue to be held, and the target is still the 3250-3280 line.

✅The current trend of gold shows a typical wide range of fluctuations, with the main rhythm being high selling and low buying between 3120-3250. The risk of chasing ups and downs in the day or in the short term is relatively high, and it is recommended to wait for the confirmation signal of returning to the key position. In terms of technical structure, pay attention to whether there is a "secondary low point confirmation". If the 3150-3140 area is effectively supported, it is still expected to rebound and test the high point; otherwise, it is necessary to guard against the risk of breaking down.