The support line is also called the resistance line. When the price of gold falls near a certain price, the price of gold stops falling, and may even recover, which is caused by bulls buying gold here. The support line plays a role in preventing the price of gold from continuing to fall. The price that prevents the price of gold from continuing to fall is the support line for the gold price.
So, how to analyze the gold price support line in the process of gold trading ? The analysis methods of the support line for gold speculation mainly include the following 6 points:
- In the upward trend of gold price, during the pullback process, the Yin line of the gold price K line is weaker than the previous Yang line, especially when it is close to the support price, the trading volume shrinks, and then the Yang line quickly eats the Yin line, and the gold price rises again, generally Consider this a valid support.
- In the upward trend of gold prices, during the pullback process, the K-line frequently appears negative lines, and the bears increase, even if there is a slight rebound near the support line, and the takeover is weak, the gold price will eventually fall below the support line.
- A disk file is formed near the gold price support line. After a period of consolidation, a long Yang line appears, and the support line is naturally effective.
- A disk file is formed near the gold price support line, but a long negative line appears after finishing, indicating that investors are rushing to flee in order to reduce losses, and the gold price will continue to fall for a while.
- The gold price falls below the support line from top to bottom, indicating that the gold market will change from an uptrend to a downtrend. Generally, in an uptrend, there is an intermediate downtrend. If the market falls below the support line of the intermediate downtrend, it means that the uptrend has ended; in an intermediate uptrend, there is a secondary downtrend. If the market falls below the secondary The support line of the downward trend indicates that the intermediate upward trend has ended, and the price of gold will continue to decline according to the original downward trend.
- The price of gold touches the support line from top to bottom, but fails to fall below it and turns around and rises. If there is a large trading volume, when there is another downward adjustment, you can open a position and hold an order to obtain rebound profits.