Friday Day Trading Thoughts

Last night, the CPI data was bullish for gold, peaking at 4375, just 7 dollars away from 4382, indicating that the historical high is still out of reach, and we are likely seeing a top in the short term. The 4350-4380 area, which we have consistently mentioned, remains a resistance zone.

On the four-hour chart, we see high-level fluctuations with unclear direction, focusing on the 4300-4350 range, particularly observing the breakout above the 4350 resistance and the 4300 support. The trendline between 4300-4308 and previous lows provide strong support, while if the Fibonacci 0.618 retracement level between 4280-4290 is breached, we look towards 4270.

Resistance at 4350 aligns with the upper Bollinger Band and recent highs, while strong resistance at 4376-4381 is marked by the trendline and previous high; only with sustained volume above 4380 can we expect to open up new space.

The four-hour gold chart shows a long upper shadow and is close to a doji star, which signals a potential top, also known as the evening star. The upper side continues to show long upper shadows, and the hourly chart also indicates a bearish engulfing pattern, with the bearish candlestick body fully covering the bullish candlestick body, suggesting a typical pullback. The lower level remains at the previously mentioned 4260 line, which is the target position!

Gold: Buy near 4300-4310, target 4330-4350

Gold: Sell near 4350-4345, target 4310 breaking down towards 4270