Gold continues to react strongly at major trend lines, indicating that orderly buying continues. The market’s continued hold on this support level is an important signal and it maintains the possibility of a continuation of the trend to a top of 4200.

However, it is worth noting that a candle closing below the trendline on the H4 time frame would be the first signal confirming weak upward momentum. The balance of power will then tilt towards the sellers and prices may correct sharply towards the 3936 area – the next intersection of strong support.

Recommended strategy:

When the market shows a rejection signal at 4041 price, activate the call option.

Profit target: 4,200.

Risk Management: H4 time frame closes below 4041 ← Switch to sell strategy with target of 3936.

Source link