8.20 gold afternoon market strategy analysis
Gold last night surged up sharply with the help of news-driven momentum; the overall major trend still remains bullish—there has been no reversal, no trend change to bearish.
At the moment, it’s just a normal pullback and consolidation after a big rally. The upward momentum is temporarily taking a breather, but that doesn’t mean the market is weakening. A short-term, mild decline is only market correction—there’s no need to be overly bearish.
There is heavy resistance in the 4500-4520 zone above. When price rebounds to this area, it generally can’t move higher much, making a second pullback likely.
Trading ideas
If price rebounds to 4500-4520, try selling short directly, with a stop loss at 4535. First look for 4470; if it breaks below, follow the move and look for 4430.
$XAU
Gold last night surged up sharply with the help of news-driven momentum; the overall major trend still remains bullish—there has been no reversal, no trend change to bearish.
At the moment, it’s just a normal pullback and consolidation after a big rally. The upward momentum is temporarily taking a breather, but that doesn’t mean the market is weakening. A short-term, mild decline is only market correction—there’s no need to be overly bearish.
There is heavy resistance in the 4500-4520 zone above. When price rebounds to this area, it generally can’t move higher much, making a second pullback likely.
Trading ideas
If price rebounds to 4500-4520, try selling short directly, with a stop loss at 4535. First look for 4470; if it breaks below, follow the move and look for 4430.
$XAU