Last Friday's market action, from July 6th, remains vivid for many traders. We had clearly identified the 4144 level as a reference point for initiating long positions, advocating for active buying above this support. We also pinpointed the critical time window between 1:00 PM and 3:00 PM. The price indeed retreated and found a low at 4160 before rallying to around 4186, capturing a move of nearly 26 points. It remains to be seen how many were able to follow this rhythm and capture this wave of profit.
The double-bottom pattern has been confirmed, and the overall uptrend remains intact. The breach and hold above the 4100 mark by the gold price has particularly opened up further upside potential. The price approaching the 4200 level aligns with our earlier expectations. The current minor support-turned-resistance level is at 4144, a point also emphasized last Friday. In early trading today, the gold price retreated from above 4200. The afternoon pullback halted precisely at the 4144 level, showing signs of a rebound. The strategy now is to place buy orders around 4144, with a stop-loss below 4140, targeting a profit of 30 to 40 points. If the European session can firmly establish the price above 4200, an accelerated rise during the US session becomes highly probable. Conversely, if the price fails to reclaim the previous high of 4202, we must be cautious of a potential deeper correction unfolding.
Current Trading Outlook
The 4144 level will be pivotal for determining market strength at the start of the week. It is suggested to look for buying opportunities on a pullback to the 4144-50 zone, with a stop loss at 4140, aiming for a 30-40 point profit target.
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