Gold Oscillates at Highs after Surging

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Summary:

Today's oscillation range should be $2392 - $2425, and it is better to buy low and sell high.

SELL XAUUSD

EXP

TRADING

2425.00

Entry Price

2350.00

2450.00

4066.57 +6.66 +0.16%

0.0

Pips

Flat

2350.00

Exit Price

2425.00

Entry Price

2450.00

Fundamentals

During Monday's (July 15th) Asian session, spot gold oscillated slightly, and it is now trading at $2410.

After the release of the key CPI data, gold surged to $2425 before plunging to $2391. Then it rebounded again to $2418 on Friday, closing at $2410 in the daily chart after consolidations. Clearly, gold formed an oscillating pattern at highs despite an upward trend, with the resistance at the double-top level.

We should pay attention to the following points regarding the gold price this week. Firstly, gold is under a bullish trend, so we should easily sell it. The resistance at $2418, $2425 and $2450 is valid. Secondly, gold is expected to oscillate at the beginning of the week, so we should not blindly go long even with a bullish view because it may plunge during oscillations. Thirdly, with oscillations, gold is likely to decline. The support could be at $2392, $2375 and $2350, and $2350 will be the key level to determine a strong or a weak trend.

Technical Analysis

Technically, gold is strong in the daily chart. The price is always above SMAs, and SMAs are forming a clear uptrend. How the price closes in the first days of the week will be essential. If gold keeps rising in the daily chart, a significant upside space above will be opened. However, if it depreciates continuously and drops below the SMAs support, a large downside space will be opened as well.

At present, the 5-day SMA is sticking to the 10-day SMA and gold has closed lower. Thus, there is a need for oscillating lower later, and the support stays near $2392. As gold opened lower this morning, it won't rise much later but may keep fluctuating. The resistance will be $2425, and the support should be $2400 and $2392. Investors can buy low and sell high between these key levels.

Gold Oscillates at Highs after Surging_1

Trading Recommendations

Trading direction: Sell

Entry price: 2425

Target price: 2350

Stop loss: 2450

Support: 2400.000/2350.000

Resistance: 2425.000/2450.000

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