Gold prices poised for upward trend: Key support levels to watch

Gold dropped from around $2009 to the vicinity of $1935 in 2020, rebounded to around 1969, but failed to break through the level of 1988 and fell again. Therefore, from a technical perspective, 1988 can be considered as a resistance level, while 1969 can be seen as a support level.

After rebounding to around 1986, gold fell back under pressure, found support at around 1975, but still failed to break through the resistance of 1988. Thus, 1988-1985 became a strong resistance zone.

After 1988 became a strong resistance, bearish sentiment surfaced again, breaking through the support levels of 1975 and 1969, causing the gold price to fall to around 1961. However, the bearish force was very strong, and after a small probe, the gold price fell directly below, dropping to around 1935. This position is important as it is the starting point of the stage of the rise and the demand for technical rebound has been formed due to the significant decline in gold price. I have also mentioned this in my trading strategy.

Subsequently, the banking incident fermented again, gold rose again with risk aversion, broke through the resistance level of the 1948 box and successfully broke through 1961 and 1969, converted from resistance level to support level, and rose again to break through the resistance level of 1975 and 1985, returning to the $2000.

However, as the rebound process from 1969 to 2000 did not test the support level, the strength of the support level cannot be determined. From a technical perspective, this is not conducive to further upward trends.

Therefore, I expect today's market to fluctuate to confirm the strength of these important support levels. Once confirmed, the next upward trend will break through the high point of 2009.

In summary, today's trading strategy is mainly bullish, with reference to the important support levels of 1985, 1975, and 1969 as buying positions.

Transaction en cours:

It is increasing the strength of the support through repeated trials

Transaction en cours: