12.15 Chengjie: Don't chase the high prices of gold at the top! Wait for a pullback under pressure before re-entering long positions!

Last Friday, gold oscillated higher, continuing last week's strong momentum! I have been emphasizing the core strategy of following the trend and mainly shorting against the main trend. Whether it’s buying on dips, buying on pullbacks, or sideways trading, friends who followed these strategies have all realized solid gains!

From a technical perspective, the overall trend of gold remains bullish. On the daily chart, the 20-day moving average has crossed above the 100-day and 200-day moving averages, solidifying a mid-term bullish structure. Although technical indicators have entered overbought territory, indicating a high likelihood of short-term consolidation or a technical correction, as long as the price remains above 4265, there is hope to retest the historical highs, possibly aiming for 4380 or even higher!

Looking at the fundamentals, the ongoing increase in rate cut expectations, a weak US dollar, and central banks around the world purchasing large amounts of gold provide strong support for medium to long-term upward momentum. Short-term price fluctuations are mostly influenced by the release schedule of economic data and holiday market liquidity changes.

Currently, the key resistance level is near the historical high, with the support at $4250. As long as the price stays above this level, any pullback presents a buying opportunity rather than a trend reversal signal! The best entry point for a second position remains the 4265 level I emphasized in my weekly review!

Gold trading advice: Short at 4345-4350 on rebound, with a stop loss at 4360. First target is 4290, then 4270!