◼️Gold Market Analysis
Last week, gold’s strong rally that had been underway finally paused, giving way to a third wave of decline from the highs.
What I want you to pay attention to is where that third wave found support.
As I mentioned in last week’s post, this decline bottomed out near the 161.8% Fibonacci extension level and then rebounded sharply.
And now, gold has started moving higher again.
So, how should we position ourselves from here?
I still plan to focus on buying pullbacks.
That’s because this decline was not caused by a breakdown of the uptrend. Rather, it likely provided a healthy pullback ahead of the next leg higher.
In fact, buying interest emerged near the confluence of the medium-term moving average on the 1-hour chart, the rising trendline, and the support/resistance line, and gold has started rising again.
In other words, rather than viewing this simply as a decline, we can see it as a corrective pullback within an uptrend.
In this kind of market, I believe buying pullbacks in line with the uptrend offers a better edge than trying to short the top.
That said, just because I’m bullish doesn’t mean I’ll go long anywhere.
In addition to the levels I’m watching for buying opportunities, I place importance on whether entry conditions, such as the moving average, are properly aligned.
So, I’ll continue to wait for price to pull back sufficiently to a point where those conditions are met before looking to go long.
For now, the potential buying zone I’m watching based on the support/resistance line is:
・Around $4,075–$4,055
However, this is only a tentative buying zone at this stage.
Its position relative to the moving average will change as price moves, so I’ll decide whether to actually look for an entry based on market conditions at the time.
I’ll continue to stay patient, wait for the conditions to align, and look for buying opportunities on pullbacks.
If further updates are needed, I’ll post them.
Last week, gold’s strong rally that had been underway finally paused, giving way to a third wave of decline from the highs.
What I want you to pay attention to is where that third wave found support.
As I mentioned in last week’s post, this decline bottomed out near the 161.8% Fibonacci extension level and then rebounded sharply.
And now, gold has started moving higher again.
So, how should we position ourselves from here?
I still plan to focus on buying pullbacks.
That’s because this decline was not caused by a breakdown of the uptrend. Rather, it likely provided a healthy pullback ahead of the next leg higher.
In fact, buying interest emerged near the confluence of the medium-term moving average on the 1-hour chart, the rising trendline, and the support/resistance line, and gold has started rising again.
In other words, rather than viewing this simply as a decline, we can see it as a corrective pullback within an uptrend.
In this kind of market, I believe buying pullbacks in line with the uptrend offers a better edge than trying to short the top.
That said, just because I’m bullish doesn’t mean I’ll go long anywhere.
In addition to the levels I’m watching for buying opportunities, I place importance on whether entry conditions, such as the moving average, are properly aligned.
So, I’ll continue to wait for price to pull back sufficiently to a point where those conditions are met before looking to go long.
For now, the potential buying zone I’m watching based on the support/resistance line is:
・Around $4,075–$4,055
However, this is only a tentative buying zone at this stage.
Its position relative to the moving average will change as price moves, so I’ll decide whether to actually look for an entry based on market conditions at the time.
I’ll continue to stay patient, wait for the conditions to align, and look for buying opportunities on pullbacks.
If further updates are needed, I’ll post them.
