Gold Price Analysis: A battle between buyers and sellers, major support levels are being tested!

Hello everyone! Today we will talk about the price trend of gold. The market continued to fluctuate within a narrow range, the contradiction between buyers and sellers at key levels intensified, and the atmosphere was tense during the session😪. However, calm skies often hide storms. Let’s take a look at the signals revealed by the technical indicators! 🔍

💰 In-depth technical analysis of gold

During today’s European trading session, gold prices tried to rise again to the $5,016 level, but as in the Asian trading session, prices quickly fell back due to the influence of sellers. It is currently trading around a very important psychological level, around $4,970 🤔.

The $4,970 level has been tested multiple times over the past week. Whenever the price falls to this level, we notice increasing buying pressure supporting it as a solid line of defense 🛡️. But as they say, “long-term sideways movement will inevitably lead to declines”, and as the test is repeated, the pressure gradually increases, and above this level, the pressure is getting bigger and bigger😰.

⚠️The key points are:

If today’s daily closing price falls significantly below $4970, this will be a very important technical indicator! This could signal the end of a short-term consolidation pattern, confirming a breakout to the downside and making way for further losses. Sellers may then launch an aggressive attack to test lower support 📉.

📊 Retreat range and potential targets

Perhaps the most important question is: When will this decline end? How far will he go?

According to technical analysis on the 4-hour chart, the theoretical callback range is roughly between $4880 and $4850. Given the ongoing geopolitical risks in the Middle East, this provides strong support for gold, and even if there is a sharp decline, such decline may not happen immediately but rather gradually.

In short, there is a bullish signal on the 4-hour chart after breaking above the previous high of $5,050. If we rely on a 1:1 correction, the main target area is roughly below the levels between $4880 and $4850. If this level is reached, the strength of the support must be monitored before determining whether the decline has ended or a new decline has begun.

⏳ Monitor short-term trends
On the smaller time frame (hourly chart), this bearish wave that started at 5016 has broken through short-term support at 4950. The current price position is gradually moving downward, with each high point lower than the previous high point, and the short-term trend shows signs of weakness and decline. Therefore, from a trading perspective, it may be more appropriate to adopt a high shorting strategy in the short term, focusing on the resistance level after the rebound.

📝 Gold trading strategy reference
To sum up, it is still recommended to be cautious in today’s trading, with the main strategy of selling on highs, paying attention to protecting key support levels, and looking for short-term buying opportunities. 💡

🟢Buying strategy:

Strategy: Buy gold in batches near the current price of 4850-4840, with a stop loss order at 4820 and a target around 4900-4880. If the price falls below this level, look for 4950.

❤️Personal summary: The current market is more of a market affected by events and emotions, rather than a market with a clear trend. Competition between buyers and sellers will be fierce at this stage; therefore, care must be taken when executing any transaction! 🚨

🚀: Timing is the key factor in trading! Recent market moves have been rapid, with price points appearing in the blink of an eye. If you’re still unsure about trends or having trouble timing your trades, feel free to contact me! 👏Sharing real-time market analysis and specific entry points every day, hoping to help everyone clear the fog and make profits! 💰 Market opportunities wait for no one! If you want to pay attention to the promotion in real time, please contact us quickly! 🤝

Source link