4.1 Gold's Strong Uptrend with Caution for Pullback: Can the Bulls Turn the Tide?

Market Review:

Yesterday, gold opened at $4511.2, with a slight pullback in the early session, dipping to a low of $4482.7 before stabilizing and rebounding. During the Asian session, the bulls gained strength, pushing prices up to a high of $4619.5, then entering a consolidation phase at high levels. After a sideways move during the European session to build momentum, the U.S. session saw another surge, with prices reaching a high of $4687.2. The session ended with a slight pullback, closing at $4667.2.

On the 4-hour chart, the market shows a typical bullish structure with higher lows and higher highs. Prices are strongly supported by short-term moving averages, with MA5/MA10/MA20 in a divergent bullish arrangement. Prices are trending upward along the moving averages, and the MACD is above the zero line with a golden cross, with increasing red bars that have slightly contracted, indicating the bullish momentum remains strong. The RSI has risen above 70 into overbought territory, reflecting high bullish sentiment, but a short-term technical correction may be needed. The Bollinger Bands' upper band is expanding sharply upward, with prices running along the upper band, maintaining a strong trend with dynamic support at the upper band.

On the 1-hour chart, after a series of large bullish candles, the bullish momentum has been fully released. Prices are strongly supported by the 5/10-day moving averages. After reaching a high of 4747.67, a long upper shadow candle appeared, indicating profit-taking and cooling off of the buying enthusiasm. The market shifted from a single-sided rally to a sideways consolidation at high levels. The MACD has become less active at high levels, with red bars expanding then contracting, signaling weakening bullish momentum and a potential correction. The RSI remains above 70 in overbought territory, adding pressure for a pullback. The Bollinger Bands' upper band has flattened, with prices hugging the upper band, indicating a short-term sideways correction phase. Support levels are around 4640-4630, with resistance at 4750-4780. Overall, the current market is a bullish acceleration with a strong technical correction needed in the short term.

Gold Trading Strategy:
- When facing resistance at 4750–4760 and clear signs of stagnation appear, consider a light short position with a stop loss at 4780, targeting 4700–4680.
- For a pullback to 4650–4640 with stabilization, consider a light long position with a stop loss at 4630, targeting 4700–4720.

Disclaimer: The above content is for personal ideas and opinions sharing only and does not constitute trading advice.