Namaste to all Hive, Indiaunited and Leo Finance community members🙏
Today Once Again I am here in front of you with my weekly analysis of GOLD. But before that let's see how the price has moved after our last Sunday's analysis.
Image by Freepik | Edited on canva
Important points that we talked about last Sunday's analysis are:
- Wait for the confirmation of the breakout because last to last friday we saw an inside bar candle on the daily 1D time frame chart which represents indecision.
- 1885 became a new major support level. This meant that a follow-up movement below 1885 would be necessary if the price of GOLD had to go further down.
- An attempt of price to move upward. But reaching a certain level (roughly 1903.50), the buyers lost control and the sellers started dominating. which resulted as a long rejection wick and a new key resistance at 1903.50.
Let us now take another dive into the Gold Chart and see where it could be headed in the coming week.
Image by tradingview
In the above image you can see at the chart of 1 Day time frame.
The inside bar candle you see highlighted by the white little circle in the image above is the candle we covered in last week's analysis. Also you can see 2 white straight lines which we saw as our major support and resistance levels for the next few days.
Image by tradingview
As you can see in the chart, after taking the support of our discussed level 1885 the price has moved up very smoothly, it has also broken the resistance of 1903.50 and on Friday we saw strong buying from the same level after a pullback which now signifies bullishness in the price.
But because an indecision candle has formed just a day before Friday, which you can see in the yellow circle in the above chart. And this candle is just as its name suggests (indecision)
So now of course there is bullishness in the sentiment but still once the price crosses above this indecision candles high, then only it will be safe to initiate fresh buy trades.
And if that happens then 1930, 1935, 1938.50, 1941 and 1945.50 can act as resistance to the upside.
And 1903.50 is now an important support because on Friday we saw strong buying momentum from that level. So if this level is broke then sellers can again start dominating the buyers.
And if that happens then the next supports could be 1896, 1890, 1885, 1881 and 1876.
Thank you for reading this blog.