To The Moon

Last week, under the news that the conflict in the Middle East eased, gold and silver bulls showed signs of cashing in profits, which triggered a sharp correction in gold and silver prices.

The 5-day moving average tracking is very effective. After the "squeeze" trend of gold prices, falling below the 5-day moving average will often trigger a relatively large correction, and the correction is started by a single-day sharp drop, so last week's decline is very close to the previous trend, and it will break through 2450 again It takes a longer time to accumulate energy and cooperate with the news.

The current gold and silver prices have entered a turbulent mode. Of course, turmoil is not a bad thing, especially for silver prices. After the turmoil falls, it will be a good time to enter the market.

Correction range of gold

The previous "squeeze" market of gold has also appeared in history, so there are still traces to follow in the law. After falling below the 5-day moving average, it will generally usher in a rapid correction, and the range is about 200-400 points, and the specific point depends on market news.

As for the current gold market, combined with the news of the Palestine-Israel conflict, based on the high point of gold price of 2450, the decline is estimated to be around 200-250 points, that is, around 2200-2250 points. Based on the current price, there is still about 100 points of room, I hope that after a quick wash next week, there will be an opportunity to buy bottoms.

At the same time, 2200 points is also the top of the large price range of gold prices since August 2020. After the current gold price breaks through 2200 points, this position has changed from a pressure level to a support level. If the follow-up market can step back, then it will be a medium and long-term long-term gold price. Chance.

In terms of time, after March-April, the price of gold usually enters a rest period, and most of them fluctuate and fall. Therefore, the current correction is in line with both the time period and technical characteristics, so it is safer to wait for the price to fall through before trading.

After the correction of silver, intervene on dips

Silver tends to follow gold. The price of gold does not fall for a long time, and silver only swings a lot. For a long time, the price ratio of gold and silver has been maintained in the range of 80-90.

Under this stable price ratio, when the price ratio is too high (close to 90), it is often when the price of silver is ahead of gold. Although the price ratio cannot judge the direction of the trend, but For the logic of the long-term bullishness of precious metals, this kind of periodic switching of the strength of the price ratio can better hold positions and wait for the market to come.

If the price ratio is high, you will hold silver, and if the price ratio is low, you will hold gold. The current gold-silver ratio is around 85, which is close to the high range. Although it has not reached the highest range, it has reached an important observation situation. If the silver price continues to bottom out with the gold price this week, it will be a good opportunity to intervene.

It is enough to hold the bottom position for a small position, and the position should not be too large. After all, there may still be repetitions. If you buy long-term call options, it is also a better tracking method.

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