Introduction
The XAU/USD Gold vs. US Dollar market on Oct 21, 2024, continued rebounding, which gives great reasons to bet on it for price moves and recently preferred the long position above the key pivot level at 2713.00 targeting 2735.00 and 2750.00 for extended gains. We are going to look into the market dynamics, support and resistance levels, and how the RSI (Relative Strength Index) could be an indicator of more potential upward movement in this strategy breakdown.
XAU/USD Levels and Market Overview
Current pressures: Because the XAU/USD has strong technical levels, it feels upward pressure. The important levels to watch are as follows:
Resistance Levels:
2765.00
The highest one for today is the highest level of trading.
2750.00
This is our first target in case we go long.
2735.00
This is the first resistance from the pivot point as our entry long position’s first target.
Pivot Point:
2713.00: This is a crucial pivot point. It serves as support and a potential entrance for a bull trade.
Support Levels:
2713.00: Supports and is the first line of a pivot.
2705.00: Secondary support that provides more downside protection.
2696.00: Last defensive in case of a reversal.
XAU/USD Intraday Strategy: Long Position Above 2713.00
Based on the current market condition, long-term is suggested above 2713.00. The pivot level has been a major support zone, and further bullish momentum calls for a price jump of 8.02 to 23.02 USD in today’s trading session.
Entry Point:
Enter long when the price breaks above 2713.00.
Targets:
Primary Target: 2735.00—The price has come to a resistance point, which would be a good point to take profit for short-term traders.
Secondary Target: 2750.00 – For the more patient; this level is a secondary resistance point where one would make a higher reward.
Long-Distance Target: 2765.00—This is the upper level of resistance. If continued upward momentum carries on breaking the resistance, then this will be reached.
RSI Indication: Further Upside Potential
Among the best technical indicators is the Relative Strength Index (RSI), which sends positive signals for the time being. The current RSI reading suggests that there is still room for further price appreciation as it has yet to enter overbought conditions. This further helps affirm our call for a buy position on XAU/USD for the day.
Now, the RSI Bullish Scenario. When the RSI advances, it means that the buying interest in gold continues. In our strategy, we remain long, and the RSI makes room for more price advances.
Risk Management and Exit Strategy
While XAU/USD the market condition remains very promising with abundant profit potential, it is also necessary to control the risk levels. Here’s how you can safeguard your trading:
Stop-Loss: In case the price dips below 2713.00, apply the stop-loss below that level. This would show a probable reversal in case of touch below that level, and the amount of loss incurred would be reduced while getting out of the trade.
Trailing stop: Lock profits as it approaches using a trailing stop as it moves in your favor. This can now be set just below the 2735.00 resistance once the price breaches that level, and adjusted accordingly with the price approaching 2750.00.
Conclusion: Bullish Continuation Expected
It is a market of rebound, for the XAU/USD on October 21, 2024. If between 8.02 to 23.02 USD price is going to be, it will have leverage on a long position above 2713.00 targeting 2735.00 and 2750.00. In addition, a positive reading from RSI sustains this outlook, hence very appropriate for traders that want to maximize the upside potential.
Always, sound risk management strategies, such as stop-loss orders, are applied to my capital. Monitor the levels and indicators listed above to enter profitable trades in the XAU/USD market.
Disclaimer
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