Introduction
Trading Strategy Update for October 18, 2024. Gold, XAU/USD The chart shows its price will gain further bullish momentum from 6.43 to 13.43 USD. Under current market conditions, we favor a long position above 2682.00 and pursue targets at 2703.00 as well as an extended target at 2710.00. This Post will take you through a detailed breakdown of key technical levels and strategic insights for traders, written clearly, humanly to maximize your trading opportunities.
Key Levels for XAU/USD
Levels of Resistance
2742.00 – Important resistance point
2710.00 – Secondary resistance and extension point
2703.00 – First level of resistance
Pivot Points:
2682.00 – Important pivot, indicating a significant support point for long trading positions
Levels of Supports
2673.00 – First level of support
2666.00 – Second degree of support
RSI Analysis: Bullish Outlook
This Relative Strength Index reading is bullish, as XAU/USD still has room to improve the price. Since the RSI is now staying above the 50-neutral zone, that means that the momentum-and thus, buying pressure strongly in favor of a higher push, at least in the short term. That coincides with our buy approach at the long entry over 2682.00 since the buyers remain in control.
Trading Strategy Explanation
Long position above 2682.00.
For today’s strategy, we would like to suggest a long position above the pivot level of 2682.00. When the level is broken and held on a sustained basis, we will expect the market to move on towards our first target at 2703.00. That is, if this level of ours can sustain breaks, then we will see the price up towards our target at 2703.00. Continued technical momentum or pressure takes the price up to an extended target of 2710.00.
Entry Point: Above 2682.00 – This has been our entry point for a long. Should the market stay above this level, then this could be a sign of strong buying interest, probably upside with potential.
Target 1: 2703.00 – This is our first take-some profit rate and at the same time resistance point. Here, the traders are expected to find signs of resistance and manage their positions appropriately.
Target 2: 2710.00 – This would be the next best place to take profits if the market continues higher.
Risk Management and Support Levels
Risk management is very significant while trading volatile assets like XAU/USD. Support levels play a great role in protecting your capital and their minimization of losses.
Stop Loss Level: Below 2682.00 – In case the price falls below this level, then the strategy becomes invalid and it would be recommended to close the long position. If you place a stop loss slightly below 2682.00, you limit the risk in case the market dynamics reverse in this rare case.
First Support: 2673.00 – Once the price falls below 2682.00, it will be broken around the level 2673.00. Although we don’t recommend short positions, we find this level rather fascinating as it can represent a signal of return upwards.
Second Support: 2666.00 – A deeper support also marks the Bulls’ last line of defense. We are expecting the fall to continue and reach an bearish trend in case the price falls that low.
Market Sentiment and Factors Influencing XAU/USD
The gold price is usually driven by various factors from economic data, policies of the central banks, and geopolitical events. The present market sentiment is bullish, which favors the XAU/USD pair coupled with inflationary pressure but uncertainty over the global economy. All the onlookers should keep watch for reports from the economic world concerning the U.S. dollar as more power in the dollar will not help gold move upwards further.
Currently, the increases in the price of gold are influenced both by geopolitical tensions and changes in interest rates. Safe-haven demand continues to come in and drive up gold as an investment opportunity in times of economic uncertainty.
Conclusion
XAU/USD trading strategy for October 18, 2024 points that the price is likely going up between 6.43 to 13.43 USD. Meanwhile, RSI is positive in nature and supports our call towards prices. The preferred strategy will be to go long at above the value of 2682.00. There will be extension targets set at 2703.00 and 2710.00. The traders will be advised to look at important support levels diligently and manage their risk accordingly. Based on the current levels of market volatility, gold indeed presents a particularly good asset for those hoping to take advantage of future expected moves upwards.
By adhering to this clearly elaborated strategy, traders make the right choices, making the best decisions on the basis of insight gained from the outlined predictions to improve their trading performance.
Disclaimer:
All the contents of this Post are meant to be informative and to educate. They do not contain any financial or investment advice or a solicitation to buy or sell commodities or engage in any activity that may be considered trading. Trading Forex, commodities, and cryptocurrencies can be very risky, and this content does not form any recommendation for those considered incipient investors. The strategies presented here find roots in market analysis and personal opinion. Past performance is never guaranteed to repeat itself.
All kinds of trading forms are significant risk parameters that make the investment decision not to be taken lightly. It requires serious attention and thinking regarding your financial situation and proper evaluation with a licensed financial advisor before investing in any. The loss caused will neither be charged to the author nor the platform since they are made while trading based on all the information given within this article.
Trading involves risk, which may result in the loss of any or all of the funds you use to trade with or, if trading on margin, even more than your deposits. Do not use money that you cannot afford to lose.
Risk Disclosure: Trading on margin or using leverage carries significant potential for gain but also increases the risk of loss to a potentially greater extent. By accessing this website, you agree not to hold the owners and operators of the website liable for such losses.
