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.