Will XAU/USD GOLD Break its Previous Major Swing High or Not? | Let's Analyze

Namaste everyone

About 15 days ago I analyzed the gold charts, after which a huge jump was seen in gold prices by taking support from lower levels. The price action was pretty much what I've told you about many times before, according to which price moves in a trend making higher highs and higher lows. And now after almost 2 weeks of sustained buying, the price has once again reached near its previous major swing high of 2010. Let us try to understand what else can be seen in gold prices from here.

Click here to go through my previous analysis.

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If we look at the price action of the past few days, gold has performed very well. But, according to technical analysis, the previous swing high will appear to act as a decisive resistance, so monitor the price at this point more carefully.

Image by TradingView | XAU/USD GOLD 4-hour time frame chart.

Although the previous swing high is the 2010 level. But to avoid getting trapped I would like to see at least 2 bullish follow-up candles above 2010-2015. This range of 5 points may seem big to you, but for some reason, if you buy assuming a confirmed breakout and it gets trapped, it will result in a huge loss. Although a trap can happen even after 2 bullish candles, the more careful you are, the more chances you have of being right. Above all, risk management plays a huge role in the success of a trader's career. So Learn to Keep Stop Losses Tight and Trail Profits. If you want details about risk management in the blog based on my experience then you can tell in the comment section. I would like to say one more important thing.

Technical analysis is not that difficult. It is difficult to apply all the lessons learned simultaneously to your advantage in a single trade. And the most important thing is your mental state and following the rules made and chosen by you.
Rules such as what percentage of your total #trading capital you have to invest in a trade.
Not to exceed maximum losses in one trade and one day.
How many technical conditions will you consider necessary to be fulfilled while taking a trade?
Instead of trading in FOMO, trade only with proper analysis and full conviction.
Etc.

Here it is important to understand that the rules made by you may be small but their impact on your trading will be very big.
On a closing note. I will buy Gold only if it sustains above 2015. Otherwise, I will look for candlestick patterns to confirm the reversal. And if I find a long upper wick candle near 2010-2015 I will look for selling #opportunities. To confirm a trend, as I told you earlier, you mark the swing high and swing low. If you see the price making new highs then it will indicate buying momentum and if the price you see making new lows then it will indicate selling momentum.