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Continue to short gold near the 4160 level.
4-hour chart: Macroeconomic triangle pattern.
Today’s strategy: Think of this as a consolidation phase.
Main price levels: $4180 – $4110 – $4060
Current strategy:
Price: $4,160
Stop loss: $4185
Take profit: $4130 – 4110 – $4100 – $4060
Resistance: The main resistance is between $4,180 and $4,190. A strong break above this level could open the door to upside potential towards $4,210 or even $4,250.
Support level: The support level between $4130 and $4140 has been tested multiple times recently. A break below this level could lead to further losses towards $4,110-4,120, as well as more important support near $4,075.
Specific trading strategies:
1. Breakout buying strategy
Scenario: Gold prices rise strongly and break above the $4,190 level.
Plan: This can be seen as a confirmation signal of increased upside potential; therefore, we recommend opening a small buy position.
Stop Loss: Set below the $4,170 level.
Target: Initial target of $4,210; if momentum is strong, target of $4,250.
2. Breakout buying strategy
Scenario: Gold prices fail to break directly above support and fall back to the support area between $4130 and $4140 with signs of bottoming (e.g. lower shadow on the mini-cycle candle).
The Plan: In the volatile markets I mentioned, this is a perfect opportunity to buy low.
Stop Loss: Set below the $4110 level.
Target: The target level is around $4,180, but some reductions are likely.
3. Rush buying strategy
Scenario: Gold breaks support between $4,110 and $4,120.
Plan: This may signal the beginning of a short-term correction; therefore shorting is recommended.
Stop Loss: Set above $4,150.
Target: About $4,075.
