Gold Analysis and Trading Strategy | July 7✅Gold opened weakly during the Asian session today, with prices dropping nearly $40 in early trading—likely due to technical selling pressure from above. The rebound once again failed to break the key 3345 resistance level, which serves as the neckline of the previous “M-top” pattern formed at the 3365 high. This level has become a clear resistance zone. If gold continues to struggle below this line, the short-term trend remains biased toward consolidation with a bearish tone.
✅ 4-Hour Chart Structure:
Since retreating from the 3365 high, multiple rebound attempts have been capped around the 3345 area. Last Friday, a second rally failed at the mid-Bollinger Band and closed lower, forming a local double-top pattern. This morning’s rebound to 3342 was again rejected, confirming continued downward pressure in this area.
✅ 1-Hour Chart Structure:
After the release of last week's non-farm payrolls data, gold formed a short-term double top. After breaking the neckline, the rebound lacked momentum, reaffirming that sellers dominate near resistance. In the short term, bearish pressure remains in control.
✅ Key Technical Levels:
🔴Short-term Resistance: 3325–3330
🔴Major Resistance Zone: 3345 (M-top neckline)
🔴Strong Resistance: 3365 (M-top peak)
🟢Short-term Support: 3305
🟢Critical Support: 3295
🟢A break below 3295 could open further downside toward 3275 or even 3246
✅Intraday Trading Strategy:
🔻 Short Position Strategy:
Consider layering into short positions around the 3325–3330 area. Stop-loss: 8–10 $
Targets: 3310–3300; if 3300 breaks, watch for a move toward 3295
🔺 Long Position Strategy:
If price pulls back and stabilizes around 3295–3298, consider layering into long positions. Stop-loss: 8–10 $
Targets: 3305–3315; if 3315 breaks, look for a move toward 3325
✅Strategy Summary & Outlook:
Gold remains in a broad high-level consolidation phase, with frequent short-term shifts between bullish and bearish sentiment. We recommend a range-trading approach—selling on rallies and buying on dips—while closely monitoring whether the 3345–3350 resistance zone is breached. This key area will likely determine the directional breakout this week.
✅Maintain disciplined risk management, avoid chasing moves, and stay alert to intraday momentum shifts.
