Gold. After a second pullback and retest, I wrote an article last Thursday titled 【Gold, Don’t Chase the Desperate】, reminding readers that gold shouldn’t be overly bearish, and that paper gold and gold ETFs are good opportunities to start building positions. Late Thursday night, favorable news came out. On Friday, prices moved sideways throughout the day, and this Monday opened strong and rallied steadily. Leveraged trading is basically not doable.

So what should you do now? First, take a look at how the previous two rebounds from the bottom unfolded: after the bottom on 2.02, gold rebounded, then retraced to the 0.618 retracement level, and continued to rise. After the bottom on 3.23, it rebounded again, retraced to the 0.5 retracement level, and then continued to climb.

For this time as well, wait until the first wave of upward movement is complete, then look for a pullback to 0.5 or 0.618. Once the pullback stabilizes, you can open leveraged long positions, and you can also top up paper gold and gold ETFs in one go—because the bottom has already been confirmed. If the recent rally hasn’t reached your target in the past few days, don’t be too disappointed. That’s because the reasons for bottom-fishing weren’t convincing enough, and many times, bottom-fishing midway up the move ends with liquidation at the last moment.

The best approach is to wait for right-side confirmation, then look for a pullback opportunity to enter—this is more reliable. Early this Thursday morning, the Federal Reserve’s interest rate decision will be announced. If there’s a pullback, that’s when you can focus on trading. In addition to paper gold, you can also watch related products such as gold stocks and the China Investment Silver ETF. Choose 1-2 to focus on.