Gold plummets, I see it as a buying opportunity. Aiming for a strong rebound on the weekly chart with a long stance

Gold is falling even further. Looking at the pace of the decline, many people might feel that it could drop more.

Still, my long-term view is to buy. This level is a highly notable buying candidate for aiming at a substantial rebound going forward.

I feel that the long-side which aims for a rebound has an edge over chasing a further drop on the short side.

When viewed on a weekly chart, the appearance of the plunge changes

First, please look at this week's gold chart.

The image is the OANDA gold/USD weekly. The display price at the time of capture was about 3,875 dollars. It has fallen sharply from the high range, and the blue moving average line shown is also below. The strength of the short-term selling is evident in the chart as well.

On the other hand, if you view the large uptrend that continued from the left and the subsequent correction as one flow, I see this vicinity as a long-term buying candidate. I do not think the situation warrants a shift to a bearish outlook merely by the magnitude of the drop.

What I am aiming for is not just a small rebound, but a substantial rebound after a significant decline.

A buying mindset is not the same as jumping in immediately

However, just because I see a buying opportunity does not mean the bottom has already been reached. It cannot be said that a reversal is confirmed from this single weekly chart.

When I write that I “feel an edge to the long side,” it is a current market view. It is not a tested result showing the probability of success, nor does it guarantee a rebound.

In the long term, I will target a rebound. Then, when actually entering, I will look at the movements on shorter timeframes to determine entry and exit conditions. I would like to separate these two aspects in my approach.

From here, shorts should be wary of a rebound

When a drop continues, shorts can seem safer. But I am cautious about looking only downward right now.

Since I am anticipating a substantial rebound, I am wary of chasing new lows in the low-price zone or delaying decisions to take profits just because there is an unrealized gain.

Of course, there remains a possibility of further declines. Likewise, long-side traders should not assume “it will come back soon” and should be prepared to reconsider if the movement differs from expectations.

My view remains long

Gold is in a sharp plunge. Even so, from a long-term perspective I still view it as a buying opportunity. It is a long-term stance aiming for a substantial rebound from here.

What matters is balancing having a clear viewpoint with following a set of rules. I intend to set entry conditions, stop-losses, and take-profit targets together rather than enlarging position sizes based only on directional anticipation or delaying stop-losses.

For those who want to organize short-term entries and exits on-screen

After considering the broad market direction on the weekly chart, if you want to verify reference prices for entry direction and take-profit/stop-loss on 5-minute and 15-minute charts, there is also KURAMA GOLD SIGNAL PRO (KGS) that I am developing.

KGS is an indicator that displays signals and take-profit/stop-loss reference prices on the chart. It does not guarantee the bottom on this weekly chart or a large rebound. Please check the product page to see how it displays and how to use it as a tool to organize short-term trading conditions.

KURAMA GOLD SIGNAL PRO
Check 5-minute and 15-minute signals / take-profit and stop-loss display →

Notes: The charts shown are from the time of capture. This article reflects my personal market view and does not guarantee price movements or profits. Trading carries the risk of loss.