Gold prices have been hovering around the $3,335 average per ounce since the beginning of June. The chart illustrates how the quotes can fluctuate, sometimes going up and down, but ultimately reverting to equilibrium. The picture also reveals that the most recent hike above this average took the form of a price gap after a strong green candle, which occurred without a rollback. The accumulation of these patterns in one direction brings the correction closer. Following the breakout, the price started to rise in the ascending channel even though the RSI indicator moved down. This technical development created a divergence that increased the likelihood of a downward correction. It's also worth noting that during the climb, prices have reached the 3,390 resistance level, which is clearly apparent on the July 22–23 chart.
Three strong technical signals suggest that it may be a good time to sell the bullion, with a target of $3,335 per ounce.
However, such a scenario could be invalidated by a significant negative news event that triggers investors to return to safe-haven assets like gold. This would push prices higher. In that case, the position would be closed at a loss.
Our final recommendation is to sell gold.
Place Take Profit at $3,335. Set Stop Loss at $3,400.
The volume of your open position should be calculated so that the potential loss, protected by a Stop Loss order, does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
