Gold trading strategy on October 1st: The price of gold may rise further, and you can consider chasing more if it breaks through 1764

Spot gold fell slightly on Friday (October 1), and the short-term technical outlook is likely to rise further. However, the price of gold is still in a downward channel. We are concerned about whether it can break through the upper trend line in the day. .


Daily level: The price of gold rebounded sharply on Thursday, and a "bullish engulfing" pattern appeared on the K-line chart, which means that the price of gold may continue to rise in the near future.

From the technical chart, the price of gold rose strongly to the 23.6% retracement level of 1743.94 and the 10-day moving average, and the short-term downward trend was curbed. In addition, KDJ took the lead to form a golden cross, and the MACD green column quickly shortened, showing that the bull energy is accumulating.

The important resistance above is the downward trend line. If the resistance of the trend line can be broken, the price of gold is expected to exit the downward channel. But if it fails to break through, it implies that the price of gold will continue to fall back. Investors are advised to wait and see for the time being.

The initial resistance above the trend line is at 1764, and further attention is paid to the 38.2% retracement level of 1777.03 and the July 23 low of 1790.26.

The initial support below focuses on the 23.6% retracement level of 1743.94, and further attention to the low of 1721.76 on September 29 and the low of 1705.89 on April 1.

(Spot gold daily chart)

Resistance levels: 1764.00; 1777.03; 1790.26
Support levels: 1743.94; 1721.76; 1705.89

Short-term operation suggestions: wait and see for now, break through 1764 to chase more.

GMT+8 13:51, spot gold was quoted at $1751.53 per ounce.