THIS IS HOW SMART MONEY TAKES YOUR MONEYAs per our Tuesday analysis, the slow bullish move we were expecting in gold is playing out exactly as planned. Respecting the analysis, I’ve already locked in a 240-pip upside move even before the London session began. However, based on the current price behavior, there is still a strong possibility of another high-quality trade setup forming today. Make sure to read this post carefully so you can understand what the market might do over the next few hours and how you can take advantage of it.
Overall, as you all know, buyers have started becoming active in gold—especially after today’s breakout above Friday’s closing price. This breakout attracted fresh buying interest, and buyers are still attempting to push prices higher. However, the current market structure feels like a trap for both buyers and sellers, and this is exactly where opportunity lies for us.
Personally, I believe that traders who entered buys around the 4758–4760 area after the liquidity sweep could also get trapped in the coming hours. The market may shake them out before making the real move. This could weaken the confidence of those holding positions for the 4800 target or a breakout. After that, from near the day’s low—around the 4745–4755 zone—we could see another strong upside move that may push gold toward 4800 and possibly even trigger a breakout.
Gold has already formed a high around 4797 and reversed from there. So, traders who sold at that level based on triple tops or rejection patterns will also be expecting a downside move. If gold drops toward the day’s low by the New York session, seller confidence will increase, and they may add more positions. But since the rejection happened near a psychological level, there is a high chance that sellers could also get trapped.
In simple terms, the market may first scare buyers into exiting their positions, and then reverse upward to trap sellers. During this upside move, random buyers may enter, and some traders may emotionally chase the breakout above 4800. This behavior could set up a major trap for the next trading session.
I hope this quick market update gave you clarity.
Let me know your view.
