Intraday trading strategy: Buy the dip

Gold looks to break above the $4,550 level and could hit new highs. Please be patient and wait for the price to correct before starting to move higher.

Currently, gold prices are forming an ascending triangle pattern and are facing resistance at the $4,550 level.

Strength is likely to continue during the Asian trading session.

Current key support level: $4510/4480

Current Resistance: $4,550

Going back to our pre-Christmas article, it’s clear that I accurately predicted that gold prices would reach new highs.

Gold edged higher ahead of Christmas.

Today is the first week after the holiday, and gold is expected to continue its upward trend. However, the risk of price correction has also increased.

This is a conclusion based on more than ten years of experience.

This is also the basis for our continued profitability.

In the past three months, our success rate has reached 85%, with profits exceeding $50,000 per contract. My channel will continue to provide one or two high quality trading signals for free.

Thank you for increasing my trading follower count.

First: Analysis of the impact of today’s news (December 29)

The focus of the market today is two important news:

1. Policy: CME Group increased margin requirements for gold futures trading after today’s close. Higher margin requirements will directly increase transaction costs, which may curb speculators’ excessive optimism and force some leveraged traders to reduce their positions. ​​This is a risk management measure at the stock exchange level.

2. Geopolitics: The phone call between the leaders of Russia and Ukraine and the meeting between the leaders of the United States and Ukraine showed that peace negotiations have made progress. The easing of geopolitical tensions will weaken market risk aversion and put short-term pressure on gold prices.

Overall impact assessment: Markets today face significant short-term challenges (rising margins) and negative news (declining geopolitical risks). This explains the volatility in gold prices after reaching record levels. The market may take some time to digest this news, and volatility may increase in the short term.

My personal opinion: Gold prices may first fall this week and then rise, reaching the $4,600 level, but may first fall back to support levels between $4,470 and $4,500.

I recommend buying when prices drop. Main price levels during the day:

Resistance: All-time high near $4,550 and psychological level of $4,600.

Support: First, focus on the psychological level of $4,500, with strong support in the range of $4,470-4,500.

Two trading strategies:

Be cautious in chasing the rise and wait for the pullback: Considering the short-term overbought indicators and the negative impact of increased margin calls, the risk of chasing the rise is greater. A smarter strategy would be to wait for the price to fall back to a key support level (such as $4,500 or $4,470), ensure it stabilizes, and then consider opening a long position with the goal of making new highs.

Short-term pullback risk management: If the price fails to hold above $4,550 and falls below $4,500 on the day, support may be retested. Traders should be wary of possible sell-offs due to increased margin requirements.

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