Gold’s bullish sentiment is too strong, you need to be cautious

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In fact, gold's fluctuations were quite severe yesterday. It opened lower, stabilized, rose sharply, and finally consolidated. The daily line recorded a positive column with a long upper and lower shadow line, and the price stabilized above the upper Bollinger Band. The periodic moving average maintains an upward trend, combined with the K line, short-term indicators also maintain an upward trend, and the potential energy has slowed down. The daily line is bullish and it is not advisable to chase the rise, especially at the current high.


Judging from the two-hour chart, the current price is running between above the moving averages of each period and below the Bollinger Band upper limit. The moving averages in each period maintain an upward trend, which is beneficial to the bulls. However, short-term indicators initially crossed downward, with a green energy column emerging. The K-line trend forms a divergent trend. The first appearance of the green energy column does not mean the end of the rebound, but it has certain reference significance for local adjustments and callbacks. It also shows the necessity and signs of a correction on the two-hour chart.


There is no doubt about the overall upward trend of gold. The idea of being bullish on gold in the long term has not changed, but this does not mean that we must chase the long position at any time. And, that doesn't mean we go long when it pulls back. Maybe that comeback will come fast and furious. , so that you are no longer afraid of longs, so we expect that gold prices will usher in a wave of adjustments.


Unlike the previous times, after gold prices broke through and hit record highs again and again, I don't think there will be a decent adjustment in the future. I am firmly on trend and following the bullish trend. If it pulls back decisively, the bullish trend continues. The actual trend is just as I expected.


Therefore, after the gold price hits a new high of $2,353, there is still room for further growth, but it is unlikely to continue or break upward. Coupled with the current surge in bullish sentiment, crowds are pouring into the market and the market has followed suit. It is obviously unreasonable to choose to chase long at this time.


Today, Tuesday, market news is light. Beware that all good news can turn into bad news. Avoid high prices before pursuing long-term risk. Personally I would choose to stay below $2353 and watch for a pullback. Even if a high is achieved today, it will not form a breakthrough. Then the expectation of callback adjustment still remains. A phased correction can be seen towards the $2,300 mark. It is expected that there is still some room for extension below this level.


Hello traders, if you have better ideas and suggestions, welcome to leave a message below, I will be very happy