Continue to short gold, stop loss 4155

Continue to short gold, stop loss 4155

As shown in the picture:

Current resistance: 4150

Current support: 4110

I still choose to sell short.

I think gold prices are unlikely to rise further.

strategy:

Sales: 4135-4140

Stop loss: 4155

Take profit: 4110-4100-4080

Analysis summary:

Gold prices are currently in a key trading range, with the market focusing on expectations of a rate cut by the Federal Reserve.

Federal Reserve officials sent a dovish signal, and the market expected that the probability of cutting interest rates in December was more than 80%.

U.S. retail sales data came in below expectations, while producer prices held steady, pointing to a potential slowdown in the economy and raising the possibility of a rate cut.

Gold prices are in a clear trading range (4110-4150 is the key range).

1. Current range trading strategy:

The buy-low-high strategy can be used until the price exceeds the current trading range.

Major Resistance: Around $4,150. This area represents the intersection of the recent retracement highs, forming strong resistance.

Key Support: Around $4,110. This area represents the recent lows and forms short-term support. There is also strong support in the $3971-4020 range.

Buy near support: When the price drops to around $4,110 and shows signs of stabilization (such as a bullish candlestick pattern), it is recommended to open a buy position.

Sell ​​near resistance: When the price rises to around $4,150 and faces resistance, it is recommended to open a short position.

2. Post-breakthrough strategy

The integration phase will eventually end; so you must be prepared for hackers.

Bullish breakthrough confirmation signal: If gold prices strongly break through and hold the $4,150 level, especially if they continue to break through the $4,185 level, the consolidation pattern may be broken and the upside potential will be expanded. At this time, it is recommended to buy with the trend, with a target price of $4190 or higher.

Downward breakthrough confirmation signal: If the price of gold decisively falls below the $4,110 mark, especially below the $4,020 mark, or even the psychological mark of $4,000, it indicates that the downward momentum is strengthening. At this time, you need to be alert to the risk of further falling to the support level of $3,970, and consider shorting on rallies.

When trading within the price range, a stop loss order can be placed at approximately 20 pips.

After a breakthrough, you can place a stop loss order in the opposite direction of the breakthrough point to prevent false breakthroughs.