On August 21st, the gold market buried a trap—don’t blindly chase higher
After gold opened yesterday, during the early part of the session the price kept consolidating and falling. During the day it tested as low as around 4450, then rebounded. By the time the U.S. session opened, gold quickly surged, breaking above the previous high; it then rose as high as around 4540, followed by consolidation. At the close near the end of the day, it settled at 4519 USD. On the daily chart, a high-position long lower shadow cross star (cross) formed.
From the 4-hour perspective, last night it looked like the market had regained what it lost, but in fact the price fell again near the close. After breaking the recent short-term high, it failed to continue higher. However, the MACD kept expanding volume; the follow-through momentum on the upside is insufficient. Also, earlier in the day I mentioned that there was a 4-hour top divergence that had not been repaired. The KDJ lines are oversold and there is a high probability of forming a dead cross. The market still needs technical correction.
At the short-term hourly level, MACD also shows short-term divergence. The Bollinger Bands are widening forward, while the KDJ lines are oversold. The short-term market also has a need for a pullback and correction.
For friends who prefer stable trading today: you can observe first. Still watch the support at 4450. If today’s price retraces to 4450 and holds firm, you can enter to build a long position. Place the stop loss around 4430 and the take-profit target at 4520.
For more aggressive traders: during the early session, you can place a light short position within the 4530—4540 range. Set the stop loss 10 USD above yesterday’s new high. If the price pulls back to the 4450 area, take profit around 4460.
As for the long-term long positions entered around 4320—4340: you can reduce some exposure. The portion you added yesterday can exit first. After the pullback and correction ends, then consider entering longs again!
The analysis above is for reference only and does not constitute any investment advice. Financial markets are highly volatile; investing involves risk—enter the market cautiously.#黄金 #伦敦金 $XAU
After gold opened yesterday, during the early part of the session the price kept consolidating and falling. During the day it tested as low as around 4450, then rebounded. By the time the U.S. session opened, gold quickly surged, breaking above the previous high; it then rose as high as around 4540, followed by consolidation. At the close near the end of the day, it settled at 4519 USD. On the daily chart, a high-position long lower shadow cross star (cross) formed.
From the 4-hour perspective, last night it looked like the market had regained what it lost, but in fact the price fell again near the close. After breaking the recent short-term high, it failed to continue higher. However, the MACD kept expanding volume; the follow-through momentum on the upside is insufficient. Also, earlier in the day I mentioned that there was a 4-hour top divergence that had not been repaired. The KDJ lines are oversold and there is a high probability of forming a dead cross. The market still needs technical correction.
At the short-term hourly level, MACD also shows short-term divergence. The Bollinger Bands are widening forward, while the KDJ lines are oversold. The short-term market also has a need for a pullback and correction.
For friends who prefer stable trading today: you can observe first. Still watch the support at 4450. If today’s price retraces to 4450 and holds firm, you can enter to build a long position. Place the stop loss around 4430 and the take-profit target at 4520.
For more aggressive traders: during the early session, you can place a light short position within the 4530—4540 range. Set the stop loss 10 USD above yesterday’s new high. If the price pulls back to the 4450 area, take profit around 4460.
As for the long-term long positions entered around 4320—4340: you can reduce some exposure. The portion you added yesterday can exit first. After the pullback and correction ends, then consider entering longs again!
The analysis above is for reference only and does not constitute any investment advice. Financial markets are highly volatile; investing involves risk—enter the market cautiously.#黄金 #伦敦金 $XAU