10.9 Chen Jie Midday Analysis
Tonight, markets will focus on the preliminary reading of the U.S. October one-year inflation expectations and the University of Michigan Consumer Sentiment Index. Official reserves remain solid at +23.02 tonnes. Although ETF holdings recorded a net outflow of 5.7 tonnes for the day, the market fully absorbed the bearish news during the daytime session and staged an extremely sharp short squeeze. The one-way squeeze-driven rally began at the early-session low of 4131, then broke through 4150 and 4180 in the afternoon, surging to a high of 4207. It is now trading near 4201, with turnover at elevated levels. The day’s gain exceeds $68. The major short-term downtrend channel has been decisively broken by a powerful bullish candle. The preferred approach is to buy on dips, using the core breakout zone as support.
The daily candlestick surged from above the lower band, forming a substantial bullish candle with a real body of more than 70 points. Price has moved into the strong resistance transition zone below the daily Bollinger middle band (4232). The daily MACD histogram’s green bars are shrinking rapidly and are on the verge of turning red.
Trading strategy
Look to go long around 4175–4185, targeting 4215, 4245, and 4280. Stop-loss: 4158. #xau $XAU
Tonight, markets will focus on the preliminary reading of the U.S. October one-year inflation expectations and the University of Michigan Consumer Sentiment Index. Official reserves remain solid at +23.02 tonnes. Although ETF holdings recorded a net outflow of 5.7 tonnes for the day, the market fully absorbed the bearish news during the daytime session and staged an extremely sharp short squeeze. The one-way squeeze-driven rally began at the early-session low of 4131, then broke through 4150 and 4180 in the afternoon, surging to a high of 4207. It is now trading near 4201, with turnover at elevated levels. The day’s gain exceeds $68. The major short-term downtrend channel has been decisively broken by a powerful bullish candle. The preferred approach is to buy on dips, using the core breakout zone as support.
The daily candlestick surged from above the lower band, forming a substantial bullish candle with a real body of more than 70 points. Price has moved into the strong resistance transition zone below the daily Bollinger middle band (4232). The daily MACD histogram’s green bars are shrinking rapidly and are on the verge of turning red.
Trading strategy
Look to go long around 4175–4185, targeting 4215, 4245, and 4280. Stop-loss: 4158. #xau $XAU