8.20 Gold makes a massive bullish breakout! Can you still chase it now?
On the 4-hour chart, the current price of gold is 4522.42.
The market has broken upward from a long-term ranging box of 4340–4450 with a single large bullish candle. The upper Bollinger Band has been directly pierced, the channel is opening upward and dispersing, and the bullish trend is fully activated. Price is above all short-term moving averages, and the moving averages have shifted from resistance to support.
Oscillators on the downside have surged rapidly into the overbought zone. The short-term upward momentum is too fast, and there is a clear divergence between price and the moving averages. There is a technical need for a short-term pullback to repair this, but this is only a correction during an ongoing uptrend. The higher-timeframe bullish structure remains intact, and there is no top signal.
Based on the Fed meeting minutes, officials’ views are divided, and rate-hike expectations have not heated up quickly, which provides upward backing for the gold price. However, the baseline that keeps interest rates high for the long term remains unchanged. The rally will not be smooth sailing; after the surge, pullbacks will be interspersed.
Key price levels
Resistance: 4550–4575
First support: 4460–4480
Second support: 4410–4430
MuHan’s trading approach
Don’t blindly chase at high levels.
If price surges and stalls around 4550–4575, you can consider a bet on a minor pullback;
Wait for a retracement into the 4460–4480 range and look for stabilization signals before considering going long in line with the trend;
If the pullback is deeper, watch the key support at 4410–4430.
News can throw off the rhythm at any time—manage position sizing well and refuse to go all-in!$XAUT
On the 4-hour chart, the current price of gold is 4522.42.
The market has broken upward from a long-term ranging box of 4340–4450 with a single large bullish candle. The upper Bollinger Band has been directly pierced, the channel is opening upward and dispersing, and the bullish trend is fully activated. Price is above all short-term moving averages, and the moving averages have shifted from resistance to support.
Oscillators on the downside have surged rapidly into the overbought zone. The short-term upward momentum is too fast, and there is a clear divergence between price and the moving averages. There is a technical need for a short-term pullback to repair this, but this is only a correction during an ongoing uptrend. The higher-timeframe bullish structure remains intact, and there is no top signal.
Based on the Fed meeting minutes, officials’ views are divided, and rate-hike expectations have not heated up quickly, which provides upward backing for the gold price. However, the baseline that keeps interest rates high for the long term remains unchanged. The rally will not be smooth sailing; after the surge, pullbacks will be interspersed.
Key price levels
Resistance: 4550–4575
First support: 4460–4480
Second support: 4410–4430
MuHan’s trading approach
Don’t blindly chase at high levels.
If price surges and stalls around 4550–4575, you can consider a bet on a minor pullback;
Wait for a retracement into the 4460–4480 range and look for stabilization signals before considering going long in line with the trend;
If the pullback is deeper, watch the key support at 4410–4430.
News can throw off the rhythm at any time—manage position sizing well and refuse to go all-in!$XAUT