Namaste to all #Hive and #Inleo community members. 🙏
You know, GOLD is considered a safe-haven asset. Since it is not at risk of becoming worthless. Even I read somewhere recently that real money is not the money in your bank account It is the #gold you own.
And after continuous selling for some time now, gold recorded its best weekly performance in seven months with a rise of 5.4% last week.
Thankfully all the levels we discussed in our previous analysis worked quite accurately. I give so much importance to technical analysis and am always ready to learn new things about it. I am sure you are also learning something new and better from all my #analysis.
Click here to go through my previous analysis.
Image by Freepik | Edited on Canva
Important points we talked about in our previous analysis are:
- The level of 1900 will be considered as a very important #support. But before this, we have another support, which has proved its presence multiple times which is 1915.
- On the higher side 1930 to 1935 would be considered as immediate #resistance because the price respected this area multiple times.
- There will be a 'No Trade Zone' between 1915 and 1935.
Now the way the price moved in the last few days is in front of you all. The price went up till 1929 and then due to continuous selling, there was a huge fall of about 6%. To be honest, I also did not expect such a decline.
However, thankfully, the recovery in prices was faster than the decline, and in the past gold recorded its best weekly performance in seven months with a rise of 5.4% last week.
Let's now take another dive into #XAU/#USD (GOLD) chart, and see where it could be headed in the coming days.
Image by Tradingview | 4-hour time frame chart of GOLD.
After heavy buying, a slight decline in the price of gold can be seen from the beginning of the day, however, no change in the current trend will be confirmed till the price slides below 1900. Although 1885 can also be seen to serve as an important level after 1900, that would be considered the final support for this analogy.
On the upside, 1935 or the high of Friday's candle will be considered first strong resistance after which 1955 will be to final one.
Now, let's understand the strategy to trade XAU/USD (GOLD) for the next few days.
For the time being, I will just look at the chart to understand price behavior. Gold may take support near the 1900 level to remain strong in the current uptrend. If the price breaks and sustains below this level it will act as a negative signal. So, special attention will have to be paid to the candles and price action formed near the level of 1900.
If the price is sustained above the level of 1900 will buy with Small Quantities because as per daily and weekly time frame, the price is trending in a lower-highs trend which you can understand by looking at the bold white trendline in the above chart, and on this Friday the price touched the resistance of the lower-high trend which is close to 1935.
So unless the price breaks above 1935 and then sustains above 1955, aggressive buying in gold may be a bit risky.
And if the price sustains after falling below the 1900 level then selling can be done with a small quantity in expectation of 1885 and then 1860 level.
My English is not very good so sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.
Thank you for reading this blog.
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"Keep Learning, Earning, and Growing"
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