Range Trade and Break out Trade opportunities
Since October 2022, Gold has demonstrated a persistent upward trend, characterized by a well-defined channel on the weekly chart. However, May 2023 witnessed a significant structural shift as Gold broke its established pattern on the daily time frame, leading to a support-resistance flip. The resistance level now stands at 1980, while support is estimated around 1938.
Range Analysis on the 4-Hour Chart:
Initially, Gold traded within a range delimited by 1940 and 1967. However, on a Friday 16th June, the price briefly dipped below 1940 but quickly rebounded back into the resistance zone. This movement suggests the potential for range-bound trading strategies, with buying opportunities near the support level and selling opportunities around resistance.
Asia Session Analysis on the 30-Minute:
During the Asia session today (20/06/2023), Gold approached the 4-hour support area, coming close yet failed to break below the 1945.17 level, indicating the emergence of a new support level. Current short term resistance levels are 1951.35, 1958.61 or 1966.37. Though 1951.35 is a weak resistance as only appearing at the end of the Sydney/Tokyo session. With expected volume due to come from London session, this level is unlikely to sustain. A break above 1953 may trigger a move up to 1958.61 or 1966.37, at which levels a selling opportunity could be explored.
Whilst Gold is in a Range, both buying and selling opportunities should be considered. Plan for both until Gold starts to trend again.
Range Analysis on the 4-Hour Chart:
Initially, Gold traded within a range delimited by 1940 and 1967. However, on a Friday 16th June, the price briefly dipped below 1940 but quickly rebounded back into the resistance zone. This movement suggests the potential for range-bound trading strategies, with buying opportunities near the support level and selling opportunities around resistance.
Asia Session Analysis on the 30-Minute:
During the Asia session today (20/06/2023), Gold approached the 4-hour support area, coming close yet failed to break below the 1945.17 level, indicating the emergence of a new support level. Current short term resistance levels are 1951.35, 1958.61 or 1966.37. Though 1951.35 is a weak resistance as only appearing at the end of the Sydney/Tokyo session. With expected volume due to come from London session, this level is unlikely to sustain. A break above 1953 may trigger a move up to 1958.61 or 1966.37, at which levels a selling opportunity could be explored.
Whilst Gold is in a Range, both buying and selling opportunities should be considered. Plan for both until Gold starts to trend again.
Trade closed: target reached:
Buy Trade Entered at 1946.90 exited at 1955
Sell Trade Entered at 1955 exited at 1930.33
Buy Trade entered at 1930.33 exited at 1936.55
Sell Trade Entered at 1955 exited at 1930.33
Buy Trade entered at 1930.33 exited at 1936.55