10.16 Chen Jie’s Morning Analysis
On Friday, watch for Eurozone and US CPI, US industrial production, and speeches by central bank officials. Central bank reserves held steady at +23.02 tonnes, while ETF holdings edged down by 0.28 tonnes. Yesterday, prices surged to 4177 and closed higher. Today, after opening at 4172, prices pulled back to 4151 and are now around 4155. This is normal profit-taking and consolidation after a sharp rally. Buyers currently have the upper hand, so continue to look for buying opportunities on intraday pullbacks.
Daily and 4-hour charts: The previous lows at 4066 and 4073 form a double bottom. The daily middle band is at 4191. On the 4-hour chart, prices are above the middle band at 4149, with the upper band at 4204. The structure is biased to the upside.
1-hour and 15-minute charts: The 1-hour middle band at 4153 is being tested, with the lower band at 4134. On the 15-minute chart, prices are holding for now at the lower band at 4151. To avoid intraday whipsaw moves that briefly break below the 4149 middle band, it is safer to move lower and buy near the 1-hour lower band.
Trading strategy
Go long around 4135–4145, targeting 4175–4205–4240. Stop: 4120#xau $XAU
On Friday, watch for Eurozone and US CPI, US industrial production, and speeches by central bank officials. Central bank reserves held steady at +23.02 tonnes, while ETF holdings edged down by 0.28 tonnes. Yesterday, prices surged to 4177 and closed higher. Today, after opening at 4172, prices pulled back to 4151 and are now around 4155. This is normal profit-taking and consolidation after a sharp rally. Buyers currently have the upper hand, so continue to look for buying opportunities on intraday pullbacks.
Daily and 4-hour charts: The previous lows at 4066 and 4073 form a double bottom. The daily middle band is at 4191. On the 4-hour chart, prices are above the middle band at 4149, with the upper band at 4204. The structure is biased to the upside.
1-hour and 15-minute charts: The 1-hour middle band at 4153 is being tested, with the lower band at 4134. On the 15-minute chart, prices are holding for now at the lower band at 4151. To avoid intraday whipsaw moves that briefly break below the 4149 middle band, it is safer to move lower and buy near the 1-hour lower band.
Trading strategy
Go long around 4135–4145, targeting 4175–4205–4240. Stop: 4120#xau $XAU