Gold has been going crazy since December of 2024. Bulls have pulled price up from 2,600 up to 3,200 current at all time highs. Typically in trading we use major support and resistance zones to confirm trading targets & zones. Charting into new territory of all new all time highs can often be very difficult to do because there are no resistance zones to target when going long.
So how did I come up with with a target price of 3,300 dollars for the short term price of gold? There is a way to build key support and resistance zones using something called spider lines. Spider lines use previous market data to provide lines across a large period of time. These lines in green are not randomized. These lines are put there from the 2018 market crash and traced to the top of the next market peak on the weekly time frame. Zooming in closer to the H4, 1 day, even into lower time frames we can see the lines STILL are very viable in marking where price will either meet resistance or bounce. Simply put if price action hits a spider line going long, it becomes resistance. Price action should pull back. Possibly until the next line below which is a support level. If price crosses above a line on a higher time frame, we enter long until price meets the next line above. This is not a detailed guide on how to draw spider lines. Just a very brief explanation of how I use them. There are plenty of great guides on how to draw them on TV.
As the chart here shows gold is currently sitting at 3,236 dollars. The daily candle is already half way above our previous spider line. This indicates it is on track to our next spider line with a resistance of roughly 3,300 dollars. Looks like an easy 2 percent profit! Place your stop loss a little below the previous daily support zone as market in long/red position. This is to prevent a liquidity grab.
So how did I come up with with a target price of 3,300 dollars for the short term price of gold? There is a way to build key support and resistance zones using something called spider lines. Spider lines use previous market data to provide lines across a large period of time. These lines in green are not randomized. These lines are put there from the 2018 market crash and traced to the top of the next market peak on the weekly time frame. Zooming in closer to the H4, 1 day, even into lower time frames we can see the lines STILL are very viable in marking where price will either meet resistance or bounce. Simply put if price action hits a spider line going long, it becomes resistance. Price action should pull back. Possibly until the next line below which is a support level. If price crosses above a line on a higher time frame, we enter long until price meets the next line above. This is not a detailed guide on how to draw spider lines. Just a very brief explanation of how I use them. There are plenty of great guides on how to draw them on TV.
As the chart here shows gold is currently sitting at 3,236 dollars. The daily candle is already half way above our previous spider line. This indicates it is on track to our next spider line with a resistance of roughly 3,300 dollars. Looks like an easy 2 percent profit! Place your stop loss a little below the previous daily support zone as market in long/red position. This is to prevent a liquidity grab.
Trade active
Slight pull back from entry to 3,200. Now we're slightly in the green at 3,240. Looking at the 1 and 2 hour time frames we can 3,200 appears to be forming a new support level. We are currently testing the previous highs.
Trade closed: target reached
Target reached. Possibly except a slight pull back here. I will have to update the chart with some new spider lines to track even higher highs now. How much more can gold keep going?!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.