Gold Technical Analysis: After the sharp rise, has the upward trend really begun?

Gold prices rose sharply on Monday following news of an easing of tensions between the United States and Iran over the weekend. Many are wondering: Has the upward trend reversed? Frankly, it’s too early to tell. Solving the fundamental problems is the decisive factor in determining the future direction of gold. If this is just a temporary slowdown, there is still a lot of uncertainty.

Gold opened higher in Asian trading today and continues to rise, currently trading around $4,572. The morning rebound was strong, breaking last week’s weak consolidation pattern, and buyers began to show signs of counterattack.

What’s the technical situation like?

Daily chart: The price stabilized above the short-term moving average, and MACD showed an initial golden cross at a lower level, indicating that the downward momentum has significantly weakened. The short-term upward trend is gradually becoming clear.

4-hour chart: The price shows an upward trend with certain fluctuations. The moving average gradually converges and stabilizes, forming an initial bullish pattern. The rebound structure is relatively complete.

Hourly chart: A series of consecutive white candlesticks indicates a strong uptrend, with prices continuing to move higher after a bull gap, showing clear strength in the short term. The important question now is whether this level can be breached and confirmed.

But looking closely at the daily chart, we find that the overall market is still in a consolidation stage, with the short-term moving average oscillating back and forth repeatedly without a clear direction. The four-hour chart also fluctuates within a specific range, oscillating between peaks and troughs. After a small rebound in the early morning, the market is still waiting for the next breakthrough.

Currently, there is broad consolidation at the bottom of the 1-hour chart. If gold prices can gradually stabilize at this bottom, buyers may mount a counterattack. However, it is important to remember that unless there is a strong break above the 4600 level, the price is likely to continue to fluctuate at the lowest levels. Volatility is expected to subside as U.S. markets close early this evening, and volatility is likely to persist.

Critical levels to monitor closely:

Resistance levels:

First resistance: 4580 – the short-term dividing line between upward momentum and downward momentum. If the rally encounters resistance, a pullback is possible.

Second resistance level: 4605 – strong resistance level during the day. Only stability above this level will open the way for further gains.

Support level:

First Support: 4535 – Key short-term support this morning.

Second support level: 4510 – an important intraday low support level. A break above this level would signal a return to the downtrend.

Day Trading Strategy: Day trading using a range trading strategy. Consider selling at resistance and buying at support.

Honestly, this type of market requires patience and waiting for confirmation of key levels.

5.25 Gold Trading Strategy Reference

Sales strategy:

Sell ​​gold in batches around 4570-4580 (20% transaction volume).

Stop loss: 4610

Target: 4550-4530, entering 4500 to fall.

Procurement strategy:

Buy gold in batches (20% of trading volume) around 4500-4510.

Stop loss: 4480

Target: 4550-4580, rising to 4590.

Strategies depend on timing; more live updates will be provided during trading hours.

The market is experiencing severe volatility. Therefore, be sure to manage your trade size carefully, place stop-loss orders carefully, and avoid holding losing trades. If you found this analysis helpful, please like and comment to stay on track and seize every opportunity!

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