Have you recalled the core trading strategy we provided yesterday? On August 11, the overall trend remained in an upward trajectory, with the operational approach strictly adhering to a long-only mantra. Each market pullback that creates a low point can be viewed as a new starting point for the next rally.
Yesterday, we clearly outlined two sets of expected long-position layouts. First, we looked to build long positions around the psychologically important $4300 integer level, which also serves as a key support area from the top-bottom conversion after last Friday's breakout. Buying on dips at this level was sound. Second, after gold prices broke above $4371, the upside space further expanded, allowing for continued long positions on minor pullbacks. The technical logic is clear: after breaking through the previous high, bullish momentum is released, necessitating a focus on following the upward extension.
Yesterday's long positions at $4318 and $4323 were both closed at $4350, reflecting a clear strategy. When facing a market pattern with minimal pullbacks, you cannot simply wait for a retrace to the previous breakout zone; instead, you must actively go long based on defending the low. Otherwise, you risk missing the entire rally as prices steadily climb.
This morning, gold surged through $4400 in early trade, extending to near $4436 before pulling back. The current quote is around $4410. Gold has once again broken above the $4400 threshold on increased volume, mirroring the pattern from the $4300 level yesterday. The question is: can we now look for long positions above $4400, just as we did previously? In a strong trend, each time the price breaks above a round hundred level, we can seize the momentum for further extension.
Today's view: In an upward trend, we still only consider how to go long, whether it's a strong long or a dip-buying long. The early morning low of $4388 serves as the key pivot for today's market. As long as this low holds, the strategy is to buy on dips. The operational reference is to enter long positions around $4400, using the $4388 early low as a stop-loss. With gold currently trading near $4410, an opportunity is approaching. Be flexible; if gold stabilizes above the $4400 level in the afternoon, consider buying directly, targeting $30 to $50 in profit. Once the price breaks to new highs, there is no need to hesitate—continue to follow the momentum by adding to long positions.
Important Note: This content is provided for informational purposes only and does not constitute investment advice. Investors should act at their own risk.
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