On October 1st, gold experienced significant short-term volatility on Tuesday with dramatic swings both up and down. The washout following excessive gains is entirely normal, as major players also need to execute turnover actions. However, it's worth noting that after gold's sharp decline from high levels, it recovered and broke through the 3871 position, indicating that bulls remain strong. After completing a rapid correction, this favors continued upward movement.
Gold bulls were exceptionally strong in September, representing an acceleration phase of the bull market with gains of $420. The monthly close formed a full-bodied bullish candlestick with substantial real body, which means there's still significant room for further bullish momentum ahead, with the next target being above $3900.
Yesterday, gold fell significantly after breaking below the 3833 watershed level, but the U.S. session recovery was able to reclaim most of the lost ground, demonstrating that bulls remain strong. Today's pullback provides another opportunity for bulls to re-enter positions. As long as the trend doesn't change, it will continue moving in this direction. However, intraday short-term trading requires careful attention to rhythm control.
On the hourly chart, after the V-shaped recovery and breaking to new highs, the continuation hasn't materialized. Currently, prices have fallen back to 3859, with support below at 3830. For intraday trading, look to go long on gold pullbacks near the 3830 support level. If prices stabilize above this level, use 3830 as the defense line for long positions.
Gold's ability to complete the washout in a single day means the probability of breaking lower today is virtually nonexistent. Continue waiting for pullbacks to go long. Look for opportunities to buy the dips above the Tuesday midnight low of 3830, expecting bulls to further push higher. The uptrend shows no signs of topping, so continue the bullish gold strategy to the end.
Specific trading reference: Go long gold at 3830, with 20-point stop loss and 70-80 point target.
