XAUUSD: It has fallen to the support area; entry point

Jul 16

Yesterday's gold price movement, with a surge followed by a pullback, was entirely in line with our expectations. When we suggested buying at 4030-4000, the price rebounded, reaching around 4073, at which point I advised taking profits and exiting the market. Subsequently, the price began to fall. Subsequently, the price began to decline. Our timing was excellent.

Currently, gold remains in a downtrend overall, making a direct upward move unlikely in the short term. Pullbacks to support levels are merely localized rebounds; this is a bottoming process. Therefore, it's advisable to trade within the current trading range.

Gold has now fallen to around 3980, where it will likely find support. Keep an eye on this level. If it holds, the price will likely rebound again; otherwise, a break below 3980 could lead to a test of the daily support zone of 3900-3920.

I personally plan to enter with a small position around 3980-3960, adjusting my position as needed based on market changes.

Jul 16

Trade active

Jul 17

Trade closed: target reached

Jul 17

Note

My judgment was very accurate, and my buy range of 3980-3960 was also very precise. Gold rebounded after testing the support area, and is currently around 4020, offering a very good profit margin.

Considering that we are still in a downtrend and are very close to the upper limit of the downtrend channel, the upside potential is limited. Therefore, I suggest closing positions now to take profits and preparing for new trades.