Namaste everyone. 🙏
From a technical perspective, any upcoming move may face resistance near the 2,050-2,075 area or multi-month peak. As you can see in the weekly chart below, gold prices have faced resistance near this level several times since August 2020.
You can see the price rejection as long upper wicks in the circular area in the image above. This suggests that this price area may appear to act as a major resistance. Apart from this, there is no sign of any weakness in the daily and 4-hour time frames. But since the price is currently trading close to this important area, It would be wise to trade with extreme caution.
In the image above you can understand the movement since our previous analysis by looking at the price action to the right of the vertical blue line. I also drew this yellow higher-higher-lower price channel in last week's analysis, and the price action has consistently followed this channel so far, which you can understand by looking at the image given above.
Another thing worth noting is that after the breakout of my suggested level of 2010, the price took support of the same level before moving forward and after spending some time there, made a big one sided move.
Now as we have discussed in the beginning, the price is currently trading near a very important level. Here instead of thinking like a buyer or seller we have to think and trade objectively like an opportunist. Because perhaps our current trend may change here.
And one more important thing, according to my experience the volatility increases very much close to the required psychological levels. This is also a reason why I will prefer monitor the price action over the next few days. 5-15m time frame can be traded with little risk, but I think this is not the right place to make big positions.
2,010 would be the crucial level on the lower side for bigger time frame trading. And on the upside from 2,050 to 2,075 I would say just sit back and watch the price action and learn.
Like there is a quote by Jesse Livermore that “There is a time to go long, a time to go short and a time to go fishing.”
I would like to change it a bit and say "True it is wise not to trade here but go fishing some other day because the price action of this area can teach you a lot."
English is not my first language. 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, Growing, and Smiling"
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