Gold Forecast: Break through the resistance level to establish an upward trend, target 5350 this week!

Last week, driven by a number of positive factors, gold prices met expectations and broke through the key resistance level of 5120. Slowing U.S. economic data, concerns about higher-than-expected inflation and continued geopolitical instability have bolstered gold’s value as a safe-haven asset. As gold’s fundamentals stabilize – global expectations of easy monetary policy and a move away from the dollar – each correction builds energy for the next rally.

Now, with the long-term resistance level of 5120 points officially broken, the future market direction has become clear.

Technical analysis: The trend is set, following the trend is the key

Looking at the daily chart, the recent consecutive white candlesticks directly indicate that bullish forces are dominant, as we have repeatedly emphasized. The moving average system has formed a record bullish arrangement, providing strong support for gold prices. With this breakout, the upside has expanded and our main target this week will be the 5350 level, where the upper border of the Bollinger Bands indicator is located on the daily chart. It should be emphasized that 5350 points is the target level of the current trend, but it is not the end point. In a strong one-way market, prices tend to exceed the limits of traditional technical levels; so we must adopt a “no-top-up” approach.

Moving to the H4 time frame reveals the strength of the bullish momentum. After a period of consolidation, the Bollinger Bands began to open upward, and the price broke through, indicating a new unidirectional trend. The moving average system diverges upward, and momentum indicators such as MACD show positive signs, indicating that gold prices are very likely to see a strong one-way upward trend this week.

Intraday trading strategy: Actively hold positions and take advantage of pullbacks

The trend has become clear and our main strategy should be more proactive. Hesitation and waiting often lead to missing the best opportunities.

For short-term trading today (Monday), it is recommended to focus on the opportunities brought by price corrections for confirmation. There are two main support levels worth paying attention to:

5110: As the first support level after breaking through the previous high, a pullback to this level and subsequent stabilization is the ideal entry point today.

5040: As a strong defensive position today, if the technical form remains intact, the sharp correction in this area is also an area worth considering entering the market.

In terms of trading strategy, it is recommended to buy on dips, which is the wisest choice in line with the trend. The immediate resistance to watch is the 5200-5230 area.

Investing is like climbing a mountain; keeping your bearings in the fog is the true test of stability. The consolidation period before the Spring Festival has led to the calm and confidence that the current trend is clear. Those who followed this trend not only gained profits, but also gained confidence in their ability to take the pulse of the market.

Market opportunities always come to those who are prepared. Once a trend starts, it is difficult to reverse it. If you agree with Annika and want to continue to move forward with her in the next market, please feel free to like this article. Welcome to share your thoughts in the comment area, follow me, and keep up with every important moment together!

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