Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Technical Analysis and Gold Trading Strategies
🎯 Basic logic
Gold prices are currently maintaining an upward trend on the daily chart. The strategy is to follow this major trend and open buy trades based on key technical support levels. After reaching a new high, the price naturally fell and is currently testing the 4160-4165 range. This area represents the previous breakout platform and short-term support/resistance level, forming initial support.
If prices fall further, the 4140-4150 area will become the main line of defense for buyers. The range supports a variety of technical indicators, including:
✨ Fibonacci retracement level 50%
📊 Daily Moving Average
🌐 Bollinger Bands middle line
When the price moves back to this level and shows signs of bottoming, it’s a perfect opportunity to add to a long position!
💡 Trading Plan
🎪Entrance area:
When it pulls back to 4160-4165 for the first time, make an initial purchase with a small position.
Add a buy position when it pulls back to the 4140-4150 range.
🛡️Risk Management:
Stop-loss orders are uniformly set at 4136, which is located at the lower edge of the basic support area, effectively controlling risks.
🎯 Target area:
The initial target is the early high resistance level of 4200-4205.
Holding this position after an effective breakthrough has the potential to rise further.
⚖️Overall evaluation
This strategy is a trend following trading plan. In the upward trend of the daily chart, positions are opened in batches at strong support levels, with clear risk limits and a reasonable risk-reward ratio. The effectiveness of the short-term bullish structure will depend on whether key support areas hold.
