On January 20, the recent market has been volatile with unstable gains and losses. We need to remain calm when trading and think more about how to capture swing opportunities. The purpose of trading is to make money, not to follow the crowd or to buy and sell arbitrarily. The most basic requirement is to operate based on the current fundamentals and technical aspects. The rule of the trading market is that there is no fixed pattern to follow; going with the trend is the kingly way. However, one should follow the trend but not chase it recklessly. Opportunities require patience; frequent trading only increases your loss rate, not your profitability. Therefore, when facing such a strong bull market in gold, what we need more is calm thinking and careful analysis of the market. Right or wrong ultimately comes down to the control of direction. If the direction is wrong, cut losses promptly; if the direction is right, hold for more profit. Only in this way can one establish a foothold in the market!
Yesterday, due to the Martin Luther King Jr. Day holiday, the U.S. stock market was closed, and gold trading ended early, resulting in relatively small fluctuations, which was within expectations. Therefore, we adopted a wait-and-see approach in the evening. Our strategy yesterday of going long from the 4650-57 range yielded some gains. Yesterday's upward momentum was exchanged for consolidation, and the intraday price action may see a pullback. Therefore, we are considering a short sell around 4675-76, with a stop-loss set at 4689. The initial target is the short-term support at 4643-45. A break below this level would look towards support at 4624, and then at 4600. A further break would target the 4584 support level. If the price reaches 4584, a short-term long position could be considered. Of course, if the decline is limited, a reversal to long might occur around the 4600 or 4624 levels. More specific actions will depend on real-time market conditions, but for now, the focus remains on short-term selling operations.
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