Namaste to all #Hive and #Leofinance community members. 🙏
You know, I don't watch #news channels at all, although I stay updated on #geopolitical news to some extent. But I don't watch financial market-related news every day. Still, my technical analysis turns out to be largely correct. And I don't have any #superpower, there are people who do much better analysis than me, and you too can do all this. It's only a matter of practice.
For some reason, I was not able to post my analysis last #Sunday. But when I saw its chart as soon as I got time, I was happy to see that the price moved quite smoothly and respected our levels.
Click here to go through my previous analysis.
Image by Freepik | Edited on canva
Important points we talked about in the previous analysis are:
- The most recent candle at the time of our last analysis was the inverted hammer which as per its definition signifies the reversal. But the reversal will be confirmed only when the price crosses and remains above the high of that inverted hammer candle.
- The low of the week at the time of our last analysis and the high of the most recent candle at the time of our last analysis will be considered as no trade zone.
Let's take another dive into XAU/USD (GOLD) chart, and see where it could be headed in the coming week.
Image by tradingview | 4-hour time frame chart of #GOLD.
The grey rectangular area started from the blue vertical line to the right side shows the price action in the days since our last analysis in the above image.
As you can see here, point number 1 was the very next day's price action when the buyers attempted to drive up the prices but failed and we've got a rejection wick. After which you can see a white cross sign which is marked to show the breakdown of our support.
After that, the price moved toward our next important support, and from there the price reversed, which you can understand by looking at the price action near point number 2. After this continuous buying took the price to a daily time frame resistance, which you can understand by looking at point number 3. Then after another fall price took support of a level we discussed in our previous analysis blog.
Now, let's understand the strategy to trade XAU/USD (GOLD) for the next few days.
After taking support of 1903 or precisely 1900, we'd seen a sharp upmove in the price of gold. This means this 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 and on the higher side 1930 to 1935 would be considered as immediate #resistance because price respected this area multiple times.
So, the #strategy is simple. There will be a 'No Trade Zone' between 1915 and 1935. Breaking this zone higher, the price could reach 1940, 1946, 1951, 1955, and 1962.
On the contrary, If the price breaks and sustains below 1915 then 1911, 1906, and 1900 could act as immediate supports. For further decline, price has to trade below 1900 which can take it down to 1895.
I never argue with my trading system and analysis, whatever strategy I've made today I'll move ahead with full #confidence. Confidence is not 'I will make a profit for sure.' confidence is 'I will be fine even if I don't make a #profit.'
Thank you for reading this blog.
आज के लिए बस इतना ही।
"Keep Learning, Earning, and Smiling"
🙏