The channel pattern is under obvious pressure, beware of the risk of the daily line turning negative
Yesterday's market showed typical technical-driven characteristics. In the absence of news interference, gold maintained a volatile upward trend but the momentum was weakened. Although the daily line finally closed positive, the bulls showed fatigue: after hitting 3345 in the morning, it approached the key pressure area (3347 coincided with the upper track of the 4-hour channel), showing the characteristics of a spent force. The current market needs to focus on whether the daily line can continue to rise. If it breaks the low and closes negative today, it indicates that the trend is turning bearish, and the market may test the support of the lower track of the channel downward.
Short-term key point analysis:
Short continuation conditions: If the European session falls below the previous low of 3279, it confirms that the callback will continue. The watershed below 3308 can be deployed to look down to the 3260-3250 support area for the second time. The first touch of this area can be used to gamble on a rebound repair.
Bull restart signal: If the price breaks through 3315 strongly and stands firm, it is necessary to pay attention to the breakthrough of the pressure of the upper track of the 3345 channel. An effective break will open up the upside, with the target pointing to the 3370-3400 area.
Operation strategy:
The focus of the Asian and European sessions is on the 3285 support level that has been tested many times. After repeated tests, the probability of a breakout increases. If the current 3300 level cannot break through the 3315 pressure, you can rely on 3308 as a defense to choose the right time to go short.
After the middle track 3285-3279 area breaks, the lower 3260-3250 as the lower track of the channel coincides with the Fibonacci retracement, which is expected to provide the first bullish resistance.
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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.