Gold Technical Analysis: Where is the Bulls Heading After a StroGold / U.S. DollarFOREXCOM:XAUUSDElina-goldGold Technical Analysis: Where is the Bulls Heading After a Strong Breakout? Good morning everyone! 👋 I'm your old friend, let's take a look at Thursday's gold market. The overnight market was incredibly volatile. After breaking through key resistance, gold prices surged like a runaway horse, soaring to as high as 4267, easily exceeding a $200 range within the day! 💪 This level of volatility not only broke the previous sluggish consolidation pattern but also ignited the bulls' enthusiasm. 🔍 Technical Analysis: Strong but Risky, Proceed with Caution The daily and hourly charts show a clear shift to a stronger short-term trend. Today's opening price even pierced the 4300 psychological level, indicating extremely high market sentiment. However, experienced traders understand that a correction is necessary after a sharp rise. My view is clear: follow the trend and be bullish, but never blindly chase the price higher! The real "hard nut to crack" lies in the 4370-4380 area, which is both the breakout window from the early June decline and a strong resistance zone near the 20-week moving average at 4390. In my view, when the price first touches this area, it will likely encounter strong resistance, possibly even triggering a technical pullback. 🚧 On the support side, the key level to watch today is 4265, a crucial support/resistance level. As long as the price holds above this level, the short-term bullish trend remains intact. If there is an unexpected pullback, 4250 and 4220 will be even stronger defenses and excellent entry points for lower positions. 📊 Trading Strategy: Primarily buy on dips, with shorting as a secondary strategy. Since the overall direction is clear, the strategy should naturally focus on buying on dips, but shorting with small positions can also be attempted at key resistance levels above. 🟢 Long Position Strategy (Conservative Priority): If the price retraces to the 4250-4240 area and shows signs of stabilization, a small long position can be initiated, with a stop-loss order placed below 4230. The initial target is 4300-4310; if it breaks through, hold and target 4340-4350. 🔴 Short Position Strategy (Aggressive Short-Term): If the price quickly surges to 4340-4350 and encounters resistance, aggressive traders can attempt a small short position, with a stop-loss order at 4365, targeting a retracement to around 4300. (Note: Counter-trend positions must be small, and profits should be taken quickly.) ⚠️ Risk Warning and Data Preview: Fundamentally, tonight will see the release of US initial jobless claims and the supply chain stress index. Based on recent data trends, the probability of continued bullishness for gold prices is relatively high. However, I must remind everyone that before Friday's non-farm payrolls report, any rapid market rally could be a bull trap. Before the trend completely reverses, I consider this rebound a temporary correction. Remember to protect your profits near the resistance levels above. No matter how volatile the market, stay clear-headed; no matter how fast the fluctuations, they can't beat a disciplined trading system. 🧘♂️ If you agree with my logic, feel free to leave your thoughts in the comments section, or give me a like so I can see you! 👍 If you have any questions, let's discuss them anytime and navigate the upcoming battle between bulls and bears together! 🔥