On July 20th, gold demonstrated a classic pattern of probing lows and rebounding last Friday. During the Asian and European sessions, prices remained confined to a narrow range with limited volatility. In the US session, prices initially declined rapidly, exhausting bearish momentum, before a strong counterattack by bulls propelled prices upward, decisively breaking through the day's high. The daily chart ultimately closed with a solid bullish candlestick.
This Monday opened with a direct gap down, with prices falling near the 3980 level before rebounding. This action essentially established a short-term low around 3980. Therefore, for the early part of the week, the focus should be on two key support levels: 3980 and 3960. Resistance above is observed at 4043 and 4080. The Asian and European sessions are likely to see consolidation within the 3980-4043 range. Monitor the price strength during the European session, with key positioning strategies to be implemented during the US session.
The current gold price is trading around 4020. The rebound high from last Friday was at 4023. A sustained move above this level would pave the way for further bullish advances. Conversely, a break below the 3980 low would likely lead to a renewed test of last Friday's low at 3960. For the afternoon European session, operational strategies could involve seeking long positions based on support from the morning low of 3980. If prices rise directly, consider flexible short positions above the 4023 level, with 4043 serving as a defensive point.
Comments