10.19 Chen Jie Morning Analysis
On Monday, the main focus is on routine data, including Canadian inflation figures. On the data front, official reserves held steady at +23.02 tonnes, while institutional holdings increased by 5.13 tonnes, indicating ample buying support at lower levels. Gold opened at 4168 today, retreated to 4156 in the early session and stabilized before gradually rising. It reached a high of 4185 and is currently trading around 4182, up more than $17 intraday. It is holding firmly above the 4-hour and 1-hour middle bands. Combined with institutional buying, this currently gives the bulls the upper hand.
Daily and 4-hour charts: The previous lows at 4066 and 4073 formed a double bottom. At 4182, price is testing the daily middle band at 4183; the upper band is at 4313. On the 4-hour chart, price is above the middle band at 4149, with the upper band at 4204.
1-hour and 15-minute charts: Price is above the 1-hour middle band at 4174, with the lower band at 4157. On the 15-minute chart, price is near the upper band at 4185, with the lower band at 4155. With price close to resistance at the daily middle band and the 15-minute upper band, it is inadvisable to chase the rise. Wait patiently for a pullback toward the 1-hour lower band and the early-session low before looking to buy.
Trading strategy
Look to go long around 4155–4165, targeting 4195–4225–4255. Risk level: 4140#xau $XAU
On Monday, the main focus is on routine data, including Canadian inflation figures. On the data front, official reserves held steady at +23.02 tonnes, while institutional holdings increased by 5.13 tonnes, indicating ample buying support at lower levels. Gold opened at 4168 today, retreated to 4156 in the early session and stabilized before gradually rising. It reached a high of 4185 and is currently trading around 4182, up more than $17 intraday. It is holding firmly above the 4-hour and 1-hour middle bands. Combined with institutional buying, this currently gives the bulls the upper hand.
Daily and 4-hour charts: The previous lows at 4066 and 4073 formed a double bottom. At 4182, price is testing the daily middle band at 4183; the upper band is at 4313. On the 4-hour chart, price is above the middle band at 4149, with the upper band at 4204.
1-hour and 15-minute charts: Price is above the 1-hour middle band at 4174, with the lower band at 4157. On the 15-minute chart, price is near the upper band at 4185, with the lower band at 4155. With price close to resistance at the daily middle band and the 15-minute upper band, it is inadvisable to chase the rise. Wait patiently for a pullback toward the 1-hour lower band and the early-session low before looking to buy.
Trading strategy
Look to go long around 4155–4165, targeting 4195–4225–4255. Risk level: 4140#xau $XAU