Gold Breaks Key Levels, Likely Bottom In Place | July 22nd

Spot Gold – Key Resistance Levels Broken
In our last weekly commentary, we wrote that Gold had likely formed a complex bottom and that we anticipated more upside. Our  trade buy reco off 1267/70 profited +3700 and +4800 pips respectively hitting our 1307 and 1318 upside targets today. Hats off to those savvy price action traders on this trade as it was discussed in our forum.

Today was the most telling day for the bottom forming as it took out two key levels today, that being the 1300 and 1321 level (April swing low), hitting a high of 1335 today (key May swing low). The fact the precious metal has formed consistent HL’s (higher lows) successively, holding above the 20ema + taking out key levels suggest a long term bottom is in place. I’ll recommend buying on a pullback towards 1303, or on a sustained daily close above 1338/40, targeting 1368 and 1389. Only a break and close below 1267 would change my short and medium term bullish bias.

gold breakout key resistance level bottom price action

Make sure to check out my latest article on Rule Based Systems vs. Discretionary Systems Pt. 1 along with our latest live price action setups for the week.

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Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Nandarani

    This is shameless bragging on my part: by summoning courage at the time, got in at 1186.49 and left the trade up, after trying for a bottom earlier at least once and failing.

    • Hello Nandarani,

      nicely done – great entry, a trade i’d definitely consider still holding as its still showing promise. do you have a trailing stop in place?
      also, feel free to email me a screenshot of the entry/trade from the brokers chart, showing entry price, and current SL. But nicely done!

      Kind Regards,
      Chris Capre