10.11 Chen Jie’s Market Outlook for Next Week
On Monday next week, the U.S., Canada, and Japan markets will be closed, with lower trading volume as the market builds momentum. From Wednesday to Thursday, U.S.–China CPI, U.S. retail sales, and the Federal Reserve’s Beige Book are set to trigger a strong directional move. Price has rebounded sharply from the extreme low of 4066 and closed Friday near the high at 4194. A large bullish daily candle has confirmed a bottom, while the 12-hour and 4-hour Bollinger middle bands form a strong confluence support zone at 4147–4153.
The daily chart formed a solid large bullish candle at the lows. The MACD green bars have contracted sharply and are close to turning positive, while the KDJ has formed a bullish crossover at low levels and is spreading upward. Strong overhead resistance is at the daily Bollinger middle band, 4231. A sustained move above this level would open up the broader upside toward the daily upper band near 4405.
The 4-hour Bollinger Bands are expanding upward, with price tracking close to the upper band (4210). The 4-hour middle band is rising rapidly toward 4147, while the 12-hour middle band provides firm support at 4153.
At 4194, price is consolidating strongly above the 1-hour middle band (4187). The 1-hour lower band at 4172 offers strong intraday support.
Trading strategy
Look to go long around 4150–4180, targeting 4230–4280–4380. Defensive levels: 4135#xau $XAU
On Monday next week, the U.S., Canada, and Japan markets will be closed, with lower trading volume as the market builds momentum. From Wednesday to Thursday, U.S.–China CPI, U.S. retail sales, and the Federal Reserve’s Beige Book are set to trigger a strong directional move. Price has rebounded sharply from the extreme low of 4066 and closed Friday near the high at 4194. A large bullish daily candle has confirmed a bottom, while the 12-hour and 4-hour Bollinger middle bands form a strong confluence support zone at 4147–4153.
The daily chart formed a solid large bullish candle at the lows. The MACD green bars have contracted sharply and are close to turning positive, while the KDJ has formed a bullish crossover at low levels and is spreading upward. Strong overhead resistance is at the daily Bollinger middle band, 4231. A sustained move above this level would open up the broader upside toward the daily upper band near 4405.
The 4-hour Bollinger Bands are expanding upward, with price tracking close to the upper band (4210). The 4-hour middle band is rising rapidly toward 4147, while the 12-hour middle band provides firm support at 4153.
At 4194, price is consolidating strongly above the 1-hour middle band (4187). The 1-hour lower band at 4172 offers strong intraday support.
Trading strategy
Look to go long around 4150–4180, targeting 4230–4280–4380. Defensive levels: 4135#xau $XAU