Gold breaks through the upper track of the pressure channel after a strong breakthrough, and may face technical adjustments in the short term
Market review
On Friday, the international gold price showed a unilateral upward trend, and the daily line closed with a real big positive line. It rose strongly from the $3,320 area during the session, and finally closed sideways at a high level near $3,365. This week, the gold price has risen by more than 7% since the V-shaped reversal from the low of $3,120, and the short-term bullish momentum is strong.
Technical analysis
Long-term channel pressure appears
From the weekly level, the gold price is currently testing the upper track of the long-term downward channel formed from the high of $3,500 (currently corresponding to the 3,380-3,400 area). This pressure line has been effectively suppressed three times since 2023. Whether it can be broken this time will determine the medium-term trend direction.
Daily bullish structure established
After the "yang enveloping yin" reversal pattern is formed at the daily level, the short-term moving average system (5/10/20 days) has been arranged in a bullish position. The red kinetic energy column of the MACD indicator continues to increase, and the fast and slow lines move up to above the zero axis after the golden cross, indicating that the trend is getting stronger. However, it should be noted that the RSI indicator has entered the overbought area (currently 72.3), and there may be a technical correction demand in the short term.
4-hour level correction demand
On the 4-hour chart, the gold price completed the head and shoulders bottom pattern measurement increase after breaking through the 3320 neckline, and is currently in the extension wave stage. It is worth noting that:
Although the US trading session hit a new high, MACD showed a top divergence
The Bollinger Band opening widened, but the price ran close to the upper track
The 3320 area has been transformed into an important support platform
Operation strategy suggestions
Long-term layout
Ideal entry: 3335-3320 area
Stop loss setting: below 3300
Target: 3370 (first target), 3400 (second target)
Short-term opportunities
When the 3400 mark is touched for the first time, a light position can be tried short
Stop loss above 3420
Target 3360-3350
Investors are advised to remain cautious in the 3370-3400 area and wait for clearer technical signals. If the channel suppression is effectively broken, the 3450-3500 area will be seen; if it falls under pressure, the defense of the 3280-3300 support area will be paid attention to. Next week, we need to pay attention to the US CPI data and the guidance of the speeches of Fed officials.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.