TechFlow news, October 7 — According to Jinshi Data, Bank of America analyst Paul Ciana said in a research report that from a technical analysis perspective, as gold prices approach the $4,000 per ounce level, signs of "momentum exhaustion" have emerged in its upward trend. The chief technical strategist noted that if this trend continues, gold prices may enter a consolidation or correction phase in the fourth quarter.
Ciana stated: "From the standpoint of trend following and risk management, it is now more appropriate to raise stop-loss levels, implement hedging strategies, or reduce some long positions." He further added that signals indicating potential "momentum exhaustion" in the gold rally include the current price being approximately 21% above its 200-day simple moving average—a level at which gold prices often peak—and the probability of peaking increases as gains near 25%.
