Introduction
During today’s intraday analysis of XAU/USD on the commodity, we have solid support at 2735.00. The price upside expected in such a market condition should lie between 8.92 USD and 16.92 USD. This gives traders the leeway to take advantage of trading using such a market condition by taking a stance with a bias for longs. The following article explains key support and resistance levels, and the logic of this trading strategy, and provides an outlook on how traders can approach today’s market from a technical analysis perspective.
Key Intraday Levels for XAU/USD on October 23, 2024
Resistance Levels:
2765.00 (Major resistance)
2757.00 (Resistance)
2749.00 (Resistance)
Support Levels:
2735.00 (Pivot point and key support)
2727.00 (Support)
2721.00 (Support)
Current Price:
Last traded at 2740.00
Strategy Overview: Long Position Above 2735.00
Strategy today would be a long position above the pivot level of 2735.00. The gold pair XAU/USD is expected to rise, and the first stops would be towards 2749.00 and, at the same time, up to 2757.00. In case the rally is maintained as being bullish, chances are that increases toward the resistance point of 2765.00 will also be maintained.
Rationale Behind the Strategy
Support at 2735.00:
The level of 2735.00 is showing strong intraday support. Buyers are going to like this if the price keeps supporting this level and remains above it, thus giving a good base for an upward move to occur. It is the pivot and with it comes pretty much a lot of determination in market sentiment and the day’s price direction.
Targeting 2749.00 and Beyond:
The first key target for the upside in the situation would be resistance at 2749.00, and once this price manages to close above this level, one can expect a push further on toward the next barrier of resistance at 2757.00. But more resistance can be expected before reaching that region. Further push to the north could take the price to 2765.00, which happens to be a major resistance point for the day.
Technical Indicators are Mixed
The technical indicators at the moment reveal all contradicting signals, and the market is not clear in this sense. Thus, this requires caution on the part of the traders to wait for some confirmations before positioning. Nevertheless, there is support at 2735.00 from which the entry can be made on the long side with clear upside targets, though at the low risks.
Risk Management:
Traders should now place a stop-loss order below that level at 2735.00 to manage well the risk, since the break below that can shift the market sentiment downside and target lower support levels at 2727.00 and 2721.00. The focus would again be at these levels to cover the entry in the short positions.
Conclusion: A Tactical Approach to XAU/USD Trading
The strategy today in the XAU/USD has highlighted strong support at 2735.00. It has a bias towards long set-ups, so it would be advisable to look towards the area of 2749.00 or even 2757.00 and potentially 2765.00. There is expected to be caution since mixed technical signs recommend the urgency of a major breakdown below the supporting 2735.00. It would also be important in terms of the risk management aspect through stop-loss orders to be placed below 2735.00.
This strategy follows a very clear and actionable trading way in XAU/USD, taking into account the most important areas of support and resistance, along with technical signals, which maximize potential returns and reduce the possibilities of risk.
