Posted by Veteran123 > 2024-05-13 16:54 | Report Abuse

Last week, the subpar initial claims data from the United States, coupled with military actions taken by Israel in the Rafah region, heightened risk aversion sentiments. Consequently, gold prices broke through resistance levels due to the escalating tensions. As anticipated, the price breached the upper boundary of the triangle, surging significantly after surpassing the key level of 2332.0. It continued to climb until encountering resistance near the descending trendline. The third retest is likely to face resistance. Currently, there are signs of bearish pressure emerging around the vicinity of 2380.0. Although a complete bearish reversal signal has not yet materialized, we must temporarily adopt a bearish bias, expecting a corrective pullback and a confirmation of previous support levels. 2352.0 and 2332.0 represent significant resistance from previous highs. These levels are likely to attract some bullish interest, with stronger support anticipated at lower price points. Additionally, attention should be paid to the support provided by the 20-day moving average, while the support from the 60-day moving average should not be disregarded. ✅ Trading Strategy: 1. Open a long position at 2352.0, SL: 2347.5, target: 2363.0 (close) 2. Open a long position at 2332.0, SL: 2327.5, target: 2342.0 (partial close) - 2349.0 (close) Note: Upon a retracement in gold prices followed by another rally, close attention should be paid to the resistance around the 2365.0 level. Only if it forms a bearish pattern can short positions be confidently initiated. 3. A clear bearish reversal signal upon touching the 20-day and 60-day moving averages could hold short-term long positions.