Gold May Halt Decline; Eye Crude Oil for Long Opportunities

In trading, which is more important: time or price? If it's intraday trading, then clearly time is more important than price. Friends who follow this column may have noticed that I often mention two key times, 8 PM and 9 PM Beijing time. For example, I pointed out yesterday that if the gold price rebounded to around 2625 by 8 and 9 PM, it would be a good time to go short. Indeed, the trend yesterday was just like that. This is based on the principle that time takes precedence over price. I will also publish a special article later to explain the principles and usage behind this principle.

First, let's look at gold.

On the daily chart, the gold price closed with a small bearish candle yesterday, but the candle did not set a new low, especially since the lowest point remained above Tuesday's low, which is a signal of a halt in the decline. At the same time, this is also the key support level of 2600. Observe one more trading day today; if this level holds, it is highly likely that next week will rebound towards the historical high.

On the hourly chart, both the opening of the New York session yesterday and the opening of the European session today were bullish candles, and the strength of the bullish candles was slightly stronger than that of the bearish candles. Although it does not constitute a bullish signal for the time being, the signal of a halt in the decline is also quite obvious.

On the 5-minute chart, the current gold price has already approached the resistance level of 2625, and the cost-effectiveness of continuing to go long is not high. Attention can be paid to whether there is a pullback in the evening, and the two FVG areas of 2612 and 2609 below are the key prices to focus on. If the price comes near 2609, it is possible to consider going long with a light position, with a stop loss below 2605 and a take-profit near 2625.

Next is crude oil, also known as USOIL.

The trend of crude oil yesterday can basically confirm that the inflection point has been confirmed. Regarding the method of confirming the inflection point, the price broke below 72.20 last night, which can be seen as a classic bear trap:

The price is close to the support of the previous high, and at the same time, there is a small rebound. In this situation, it is easy to still mistakenly believe that this point has formed an inflection point. Therefore, institutions often use this situation to carry out a bear trap operation, driving the price below the original low, forcing investors to stop loss and sell, and thus taking over the chips at a lower price.After the confirmation of the inflection point, any pullback opportunity could potentially be a chance to go long. This wave of rebound in USOIL may once again push towards the $78 level, and a stop-loss could be considered below $72.20.