How much further can gold bulls go? for FOREXCOM:XAUUSD by Caesar_Gorman01

How much further can gold bulls go?

News analysis:
On Thursday, January 2, spot gold rose slightly in the U.S. market and is currently trading around $2,652/ounce. Gold prices closed up 0.72% on Tuesday at $2,624.28/ounce, helping gold prices rise 27% in 2024, the largest annual increase since 2010, driven by safe-haven demand and interest rate cuts by central banks; however, market sentiment may become more cautious, depending on policy shifts during Trump's second term as president. In addition, the U.S. dollar index hit a two-year high on Tuesday, and the U.S. 10-year yield achieved its best annual increase in two years, and gold was also cautious.

Gold Trend Analysis:
Judging from the current market situation, the technical form also highlights the situation that has stopped the decline and is favorable to bulls. First of all, look at the daily line. Tuesday's dip and rebound trend closed positive on the daily line, but with the piercing of the 5-day moving average and the weakness of the 10-day moving average The downward pressure pattern shows that the short-term resistance is very fragile. In addition, other cycle indicators maintain a bullish arrangement. The Bollinger Middle Rail also extends upward. At the same time, the double lines of the MACD indicator have signs of forming a golden cross again. Therefore, the overall daily line seems that bulls are entering. Take proactive steps. In the 4 hours, after rising in early Asian trading, the current price is still hovering near the upper Bollinger Band. Although the upper Bollinger Band shows a suppressed form, as the short-term moving average moves upward, the lower Bollinger Band also extends upward, so it can be judged that The short-term downside space for gold prices is limited; in addition, the MACD double-line golden cross is in an upward form and has sufficient upward potential. Therefore, the overall 4-hour level can be expected to fall back and the bulls will launch a counterattack again after adjustment.

Operation idea: In day operation, it is recommended to mainly go long on dips, supplemented by shorting highs. For short-term support below, focus on the 2635-2638 area, and continue to look at the 2650-2660 area above. If the bears strongly break through the 2625-2630 area, it means that the market has peaked in the short term, and there is a high probability that the 2610 area will be explored again, or even exist. Possibility of breaking down. For the short-term resistance above, pay attention to the 2658-2660 area first, and try short selling. Focus on the 2666-2668 area during the day.

Trade active

Yesterday, the technical aspect of gold ushered in a strong unilateral rise from the bulls in the volatile trading. The Asian market opened quickly and surged higher, standing above the 2630 mark, and fluctuated strongly sideways. The European market slightly surged above the 2639 line, and fell back under pressure for the second time. Confirmation and stabilization of the 2632 mark welcomes bulls It rose strongly, and finally the U.S. market accelerated its upward breakout and stood above the 2640 mark. It continued to rise above the 2650 mark and closed at almost the highest point of the day. The daily K-line closed with a strong shock on the positive line. The overall gold price fluctuated repeatedly around the 2580 mark and consolidated for nearly Arrival in two weeks The bulls make an upward breakthrough. Next, we will mainly be bullish, but we must not chase the bulls at a high level. Adjust the operating ideas before proceeding.

Judging from the 4-hour analysis, today’s top focus is on the 2673 first-line suppression, and the bottom support continues to focus on yesterday’s hourly neckline around 2640-48. During the day, relying on this position to defend will continue to be bullish and the bullish trend will remain unchanged. The short-term bullish strong dividing line will focus on the 2630 mark. , the daily level stabilizes above this position and continues to follow the trend and participate in long positions at low levels. Be careful with short-selling orders against the trend, and keep the main tone of participation in the trend unchanged.

Gold operation strategy:

1. Go long when gold falls back to 2643-2648, stop loss 2633, target 2665-2673 line;

2. If gold rebounds to 2665-73 line and does not break, you can go short, stop loss 2680, target 2645-2648 line;

Trade closed: target reached

From the 4-hour analysis, the top will focus on the 2665-73 first-line suppression, and the bottom support will continue to focus on yesterday’s hourly neckline around 2640-48. Relying on this position to defend during the day, the bullish trend will remain unchanged, and the short-term bullish strong dividing line will focus on 2630 At the pass, the daily level stabilizes above 2640 and continues to follow the trend of the callback. The main focus is to buy at low levels to participate, and the main tone of follow-the-trend participation remains unchanged. Gold operation strategy:

1. Gold retreats and goes long near 2643-2648, stop loss at 2633, and target the 2665-2673 line;

2. If gold rebounds, if the 2665-2673 line is not broken, you can go short, with a stop loss of 2680 and a target of 2645-2648;

Caesar_Gorman01

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