11.3 Chen Jie Morning Analysis
On Tuesday, keep a close eye on the Reserve Bank of Australia's decision, U.S. factory orders, and developments in the U.S. midterm elections. Official reserves rose by 23.02 tonnes, while institutional holdings edged down by 1.14 tonnes. Last night, prices climbed to 3970 before retreating to close at 3946. They opened at 3949 this morning, dipped to 3942, then stabilized and rebounded; they are currently trading near 3952. The overnight pullback held above the 15-minute lower band at 3939, and this morning prices moved back above the 15-minute middle band at 3947. The 4-hour and 1-hour MACD histogram bars have remained positive, and the bottom-rebound structure remains intact.
The daily chart has regained its footing above the lower band at 3905, and the 12-hour KDJ has formed a bullish cross at low levels. The swing recovery points toward the 12-hour middle band at 4022. However, last night's high of 3970 was met with resistance right at the 4-hour middle band at 3971, while the 4-hour KDJ is in overbought territory, indicating short-term resistance around 3971.
At the current price of 3952, there is limited room to the 4-hour middle band above. Chasing prices directly could easily lead to a pullback after a brief rise. The 1-hour middle band below has risen to 3929, coinciding with the 50% retracement level of yesterday's rally. The safest approach is to patiently wait for a pullback to the 1-hour middle-band support zone before entering.
Trading strategy
Go long near 3925–3935; targets: 3965, 3995, and 4025. Risk level: 3905#xau $XAU
On Tuesday, keep a close eye on the Reserve Bank of Australia's decision, U.S. factory orders, and developments in the U.S. midterm elections. Official reserves rose by 23.02 tonnes, while institutional holdings edged down by 1.14 tonnes. Last night, prices climbed to 3970 before retreating to close at 3946. They opened at 3949 this morning, dipped to 3942, then stabilized and rebounded; they are currently trading near 3952. The overnight pullback held above the 15-minute lower band at 3939, and this morning prices moved back above the 15-minute middle band at 3947. The 4-hour and 1-hour MACD histogram bars have remained positive, and the bottom-rebound structure remains intact.
The daily chart has regained its footing above the lower band at 3905, and the 12-hour KDJ has formed a bullish cross at low levels. The swing recovery points toward the 12-hour middle band at 4022. However, last night's high of 3970 was met with resistance right at the 4-hour middle band at 3971, while the 4-hour KDJ is in overbought territory, indicating short-term resistance around 3971.
At the current price of 3952, there is limited room to the 4-hour middle band above. Chasing prices directly could easily lead to a pullback after a brief rise. The 1-hour middle band below has risen to 3929, coinciding with the 50% retracement level of yesterday's rally. The safest approach is to patiently wait for a pullback to the 1-hour middle-band support zone before entering.
Trading strategy
Go long near 3925–3935; targets: 3965, 3995, and 4025. Risk level: 3905#xau $XAU
