On July 16th, the current trading range for gold has become clearly defined. The broader range is between 3940 and 4200, which serves to grasp the overall market structure and guard against sudden breakouts. The core short-term, smaller range is locked between 4000 and 4100, which has also been our primary trading zone in recent days. The operational principle is crucial: first, observe the fluctuations within the smaller range; once it is effectively broken, then shift focus to movements within the broader range. If the broader range is also decisively breached, then follow the trend for a potential one-sided move. This week's price action on Wednesday and Thursday perfectly aligned with this rhythm, repeatedly churning within the smaller range. The short-term strategy remains selling high and buying low, executing rolling operations.
Yesterday, gold retreated to test the support level around 4013, stabilized, and rebounded, reaching a high near 4080 before pulling back. Today, the focus is on these two levels: 4080 and 4013. If the price rallies to touch the 4080 zone, it is highly likely to encounter resistance and decline. Conversely, if it falls to touch the 4013 zone, it is also highly probable to find support, stabilize, and bounce back. Intraday trading does not require chasing a one-sided trend; simply participate by selling high and buying low around the range-bound rhythm. Patiently wait for effective touches at support and resistance levels to capture short-term opportunities. Wait for the market to choose a direction itself, and only after key levels are decisively broken should you follow the side with the higher probability of success.
Today's Outlook
Currently, gold is trading around 4030. Observe the strength or weakness during the European session and plan for one trade in the evening. Reference intraday strategies: consider a short-term long position if it stabilizes around the 4013 support from the Asian session. Look to sell short around the 4080 resistance area on a rebound. If the price breaks above 4080, consider following with a long position on a small pullback. Conversely, if it breaks below 4013, consider following with a short position on a minor bounce.
Comments