On July 24th, the gold market saw a significant decline. As mentioned on Thursday, gold's intraday performance needed to be observed first. After the support level at 4107 was breached, the next area capable of holding prices was 4084, where a long position attempt was warranted. However, during the European session, prices did test this level, but the bounce was very weak, only reaching 4100 before breaking lower again, necessitating a position adjustment.
Yesterday, gold prices directly broke through the two key support lines at 4107 and 4084, triggering a sharp decline of over $100. Following the large drop, there was no significant rebound during the overnight session, with prices oscillating sideways at low levels, consistently capped by the 4060 mark. Early this morning, the market continued its weak trend, dipping to around 4022 before finding support and bouncing back. The current price has recovered to near 4055.
The next focus is on the resistance level at 4065. If the rebound encounters resistance at 4065, it presents a short-selling opportunity. Conversely, if prices manage to break above 4065, a pullback could be used to enter a long position. Given the current rebound from the 4022 low, the key is to monitor the strength of the rebound during the European session. A short position can be considered if the price is capped at 4065, with a 5-dollar stop-loss and a 20-dollar target. For long positions, consider buying on dips above the Asian session low of 4022, with a stop-loss at 4022 and a 20-dollar target. If the price firmly breaks above 4065, a long entry on a pullback above 4045 is advised.
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