THIS ONE LEVEL WILL DECIDE GOLD’S NEXT BIG MOVE…## Tuesday Gold Analysis & Trading Plan
Monday’s market played a very interesting game. It intentionally opened with a gap-up so that traders wouldn’t get a chance to buy from lower prices. Overall, only those who held buy positions over the weekend were able to capture significant profits.
Just because the market opened with a gap-up, the resistance zone that I had previously mentioned between $4270 - $4300 was completely bypassed. Since the market opened above that resistance area, we naturally saw overall buying pressure throughout the session. However, according to my weekly plan, my overall outlook remains unchanged. The market has simply reacted to the gap-up opening, but my broader trading bias is still the same. Now, let's understand what the plan is for Tuesday and how I will be approaching the market.
In yesterday’s analysis, I specifically mentioned that Monday and Tuesday would likely be used to trap buyers at higher levels, and that is exactly what happened after the gap-up opening. I also highlighted the importance of the $4366 level. On June 9, the market faced resistance from this level, which caused many random sellers to enter there. Monday’s move appeared to be designed to target those sellers. As soon as the market swept the liquidity above $4366, it showed a strong reversal, which was expected because the market created a very interesting buyer trap. Keeping that trap in mind, I’ll be planning my trades accordingly today.
### What Happened on Monday?
During the London session, the market retraced from exactly $4300 and then continued its upward movement. This likely encouraged many traders to buy because whenever strong momentum appears around a round-number level, traders often enter without much hesitation, placing their stop losses just below that level.
I believe that after seeing the gap-up move and the strong buying trend from last week, many traders are currently holding buy positions with stop losses around $4300 or slightly below it.
Interestingly, the market opened above $4300 today and spent a considerable amount of time consolidating above that level during the Asian session before moving higher. Whenever the market spends a lot of time around a major round number, it often means that market makers are giving retail traders an opportunity to build positions so they can later be trapped. In simple terms, liquidity is being generated, and that is clearly visible right now.
Considering the current market conditions, it would be somewhat unpredictable for the market to continue rallying aggressively after such a strong gap-up opening. Also, just because the market moved higher from $4300 yesterday does not mean it will repeat the exact same move today. Markets rarely repeat identical price action. Even in a bullish trend, when buying or selling previously occurred from a specific area, a similar move from the same area later often turns into a trap.
### My Trading Plan for Tuesday
Keeping all these factors in mind, I prefer looking for selling opportunities today and targeting levels below $4300.
My key selling zone is:
* $4338
* $4346
* $4350
If price reaches this area, I will look for a 5-minute timeframe confirmation before entering a sell trade on Gold.
My primary target remains a move below $4300.
At the same time, $4303 is also a very important level. If the market closes a strong 30-minute candle below $4303, we could potentially see a downside move toward $4270.
### Invalidation Level
This selling plan remains valid as long as the market stays below $4366.
However, if the market manages to break and hold above $4366, then this bearish outlook becomes invalid. In that scenario, I would shift my focus to buying opportunities, with potential upside targets around $4400 - $4419.
Please pay close attention to all the levels mentioned above, as they are significant areas in the market. Always wait for proper confirmation before entering any trade to improve your risk management and overall profitability.
Good luck everyone for Tuesday. I hope you have a profitable trading day! 📈🔥
By the way, what’s your Tuesday trading plan? Let me know in the comments! 👇🏻💬
