Namaste to all #hive and #inleo community members. 🙏
Following our analysis from last week. Continued buying in GOLD has pushed the prices to new highs in the same higher-higher #trend. The price action of the last 2 weeks is a great example of how trend #trading can help you make high-probability trades. Simply because when you swim downstream, you are able to cover more distance in less time, and that too with minimal risk of drowning. :)
Click here to go throw my previous analysis.
Image by Freepik | Edited on Canva
Important points we talked about in our previous #analysis are:
- Gold may take support near the level of 1900 to remain strong in the current uptrend.
- No change in the current trend will be confirmed till the price slides below the level of 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, October 13th candle will be considered the first strong resistance after which 1955 will be the final one.
- If the price is sustained above the level of 1900 will buy with Small Quantities for the target of 1935 and 1955.
Chart image by Tradingview | 1-Day time frame of gold chart.
Let's now take another dive into #xau/#usd (GOLD) chart, and see where it could be headed in the coming days.
In the chart shown above you can clearly see that the buying similar to those seen in the last 2 weeks were seen 7 months ago at the beginning of this chart. So this is really a strong move undoubtedly. However, Friday's candle closed lower after rejection from another important level. However, this does not indicate any weakness in this strong trend.
But caution is necessary here because even a healthy trend needs to be followed with some profit booking to remain healthy.
Now, let's understand the strategy to trade XAU/USD (GOLD) for the next few days.
Now since we know that gold is in a higher-high trend with good strength in the price and volume. I would not think of selling it as long as the price remains above 1955 and 1945. Because recently while moving in higher-high trend prices had spent time near these levels.
But because Friday's candle closed lower after rejection from another important level. And since this level is very close to the psychological level of 2000, I will wait for the price to break and sustain above the 2000 level to place fresh buy orders with regular quantity. And if this happens then #gold prices may also reach to its all-time high.
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.