In the gold market on July 13th, prices opened the morning session at 4103 and immediately experienced a decline, reaching a low of 4043 before rebounding. The current price is trading around 4073. The morning's high of 4102 serves as the critical pivot point for the day, representing a key reference level. If the European session's rebound fails to surpass 4102, it would indicate that bearish momentum is likely to persist, leading to further downward exploration. Conversely, if the rebound is too forceful, for instance, directly breaking through 4102, it would suggest that bearish pressure is not decisive, and the market may revert to a consolidation pattern.
The strength or weakness exhibited during the European session is crucial, as it will set the tone for trading operations in the evening. It is anticipated that as the gold price rebounds near the morning high and the opening decline area around 4102, it will face significant resistance. During the European session, a strategy of selling on rallies, relying on the resistance around 4102, can be considered, continuing to watch for price declines to test lower levels. The key support level to monitor below is the previous low at 4022, which has already established itself as an effective bottom support. A price decline touching this level will likely lead to a halt in the drop, stabilization, and a subsequent rebound and corrective move.
Overall, the broad trading range is between 4138 and 4022. Trading can involve selling near highs and buying near lows, following the range-bound consolidation rhythm, patiently waiting for favorable positions to capture short-term opportunities. A break outside this range will signal a potential directional extension! For the European session, a trading reference is to consider short positions around the 4090 area, with a stop loss placed above the morning high of 4102, targeting a profit of 30 dollars or more. On the downside, if the price approaches the 4022 support, a defensive strategy can be to look for signs of stabilization and consider short-term long positions upon a confirmed halt in the decline.
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