Gold experienced a strong bullish reversal on September 18. After establishing support at 4257 during the early session, the price steadily advanced, accelerating to a high of 4381 during the US trading hours. The single-day fluctuation exceeded $120, and the daily candlestick closed as a long upper shadow bullish candle, indicating a concentrated release of upward momentum.

Many traders have been blindly bearish due to expectations of a Fed rate hike, overlooking the market's underlying logic — a 25 basis point increase was already priced in and fully digested well in advance. This is a textbook case of "sell the rumor, buy the news," where the announcement itself becomes the turning point for bears to exit and bulls to counterattack. Simply chasing shorts on headlines would be an unwise approach.

Based on the closing candlestick structure from yesterday, today's strategy favors a long-biased approach with short positions kept secondary. The priority is to buy on pullbacks, with short entries only considered if resistance holds firmly. Key daily support sits at 4297; a pullback into this zone represents a solid low-risk buying opportunity and an ideal window after consolidation completes.

On the smaller timeframe, the trend line of the bullish/bearish divide stands at 4327. As long as the price remains above this level, the market retains a bullish tilt and long positions can be initiated upon touch. If momentum pushes higher and breaks through, a role reversal will take shape, allowing gold to extend its upward move above the 4335 level.

The immediate upside targets are 4360–4380, and once these are breached, the market will aim for the 4400 psychological round number. On the weekly chart, strong resistance is concentrated in the 4420–4430 range. If the price reaches this zone and fails to break above, counter-position shorts can be deployed to trade a pullback within the consolidation band.

Trading recommendations: Buy on dips near the 4327 support level. Hold long positions for continued upside once the price stabilizes above 4335. For rallies into the 4400 mark and the 4420–4430 weekly resistance band, consider short entries if resistance holds without a breakout.

Risk disclaimer: This content is for reference only and does not constitute investment advice. Investors should operate at their own risk.