Gold Support and Resistance Levels for Intraday Traders
Understanding support and resistance levels is critical for successful intraday trading. In today's analysis, we focus on gold, where the pivot level of 2695.00 plays a key role in determining trading strategies. Below, you'll find a comprehensive breakdown of our preferred approach, alternative scenarios, and key technical levels to monitor.
Pivot Level: 2695.00
The 2695.00 level serves as the focal point of today’s analysis, acting as a resistance that guides our preferred bearish trading strategy.
Our Preference: Short Positions Below 2695.00
- Action Plan: Initiate short positions as long as gold remains below the pivot level of 2695.00.
- Targets:
- Primary Target: 2655.00
- Secondary Target: 2640.00
This approach assumes bearish momentum, with 2695.00 continuing to act as a strong resistance level.
Alternative Scenario: Upside Potential Above 2695.00
- Action Plan: If gold breaks above 2695.00, shift to long positions.
- Targets:
- Primary Target: 2710.00
- Secondary Target: 2721.00
In this scenario, breaking the resistance at 2695.00 would signal a bullish reversal, paving the way for further gains.
Market Commentary
"As long as 2695.00 is resistance, look for choppy price action with a bearish bias."
This statement underscores the importance of the pivot level, suggesting that traders should prepare for volatility but maintain a bearish outlook below 2695.00.
Support and Resistance Levels: Key Insights
| Level | Role | Notes |
|---|---|---|
| 2721.00 | Strong resistance | A potential high in a bullish scenario. |
| 2710.00 | Secondary resistance | Marks a key level above the pivot for bulls. |
| 2695.00 | Pivot and resistance | Critical level shaping intraday strategies. |
| 2670.32 | Last traded price | Reflects the current state of the market. |
| 2655.00 | Primary support target | Indicates bearish momentum continuation. |
| 2640.00 | Extended support target | Confirms strong bearish sentiment if reached. |
| 2630.00 | Strong support | A potential floor in a bearish scenario. |
Trading Tips for Intraday Gold Traders
1. Stay Focused on the Pivot Level
The 2695.00 pivot is crucial for determining market direction. Monitor price action closely around this level.
2. Use Risk Management Tools
- Stop Loss: For shorts, place a stop loss above 2695.00. For longs, place a stop loss below this level.
- Position Sizing: Ensure your lot size aligns with your risk tolerance.
3. Watch for Breakouts or Pullbacks
- If gold breaks above 2695.00, look for confirmation before entering long positions.
- If it holds below 2695.00, continue with the bearish strategy targeting lower levels.
4. Keep an Eye on Volatility
Choppy price action can result in false signals. Be patient and wait for clear confirmation before committing to a trade.
Gold Intraday: under pressure.
Pivot: 2660.00
Our preference: short positions below 2660.00 with targets at 2619.00 & 2595.00 in extension.
Alternative scenario: above 2660.00 look for further upside with 2688.00 & 2721.00 as targets.
Comment: the RSI shows downside momentum.
Supports and resistances:
2721.00
2688.00
2660.00
2632.00 Last
2619.00
2595.00
2525.00
Conclusion
Gold’s intraday trading opportunities hinge on the pivotal resistance at 2695.00. Traders should maintain a bearish outlook as long as this level holds, targeting 2655.00 and 2640.00. However, a break above 2695.00 would signal bullish potential, with upside targets of 2710.00 and 2721.00.
Stay disciplined, manage your risks effectively, and keep an eye on key levels to capitalize on today’s gold trading opportunities.
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