XAUUSD: This is What You Need to Know Before Trading GOLD
Wow. There's so much going on here on Gold from a technical analysis perspective. In this idea I will walk you through all the important things you need to know before trading.
The start this off, the nice thing about trading gold right now is that there is so much volatility in the market. Many months of perhaps years of price movements get condensed into just one or two months!
We get to see very interesting support and resistance zones from quite some time back that come into play again here. And the beauty is that many people might have forgotten about these.
I added them to the chart again so you can have an edge over other traders who did not spot these. Let's work our way from the top to the bottom.
Resistance around 1775:
This resistance comes from the last surge in gold price that began all the way in 2008 after the financial crisis. This resistance was first hit in November 2011 and showed to be very important multiple times quickly thereafter. It is not likely that the price will break through this resistance in one go, so if the price starts bullish on Monday we can expect a few attempts on this zone that we can monetize with a short each time.
Support level 1:
This is a crucial area at this moment, because the price has just fallen back a bit into this area. The first crucial question is, will the price start oscillating between support level 1 and 2, or will it move between support level 1 and the resistance?
To answer such a complicated question, I looked at markets that are open at the weekend since nearly all markets are so heavily correlated at this moment. When we look at the digital new gold bitcoin , we see that the prices have consistently been going up over the last few days.
I expect the price to bounce off this support zone and start trading in the upper area.
Support level 2:
This support area is really strong, seeing that it played an important role for four times in the very recent history. If the price breaks through support level 1, I expect it will slowly move down and find support here at support level 2. This could be monetized using a short trade, to be recognized after the market opens with a bearish momentum
Finally we have support level 3:
This support zone is going back all the way to November in '19 and has shown to function properly as a support zone before. Hopefully we won't be needing this support zone any time soon, but it might show up on future charts again.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
Educational
If you want to learn more about how to place your limit orders including entry, stop-loss and take-profit, check out:
The start this off, the nice thing about trading gold right now is that there is so much volatility in the market. Many months of perhaps years of price movements get condensed into just one or two months!
We get to see very interesting support and resistance zones from quite some time back that come into play again here. And the beauty is that many people might have forgotten about these.
I added them to the chart again so you can have an edge over other traders who did not spot these. Let's work our way from the top to the bottom.
Resistance around 1775:
This resistance comes from the last surge in gold price that began all the way in 2008 after the financial crisis. This resistance was first hit in November 2011 and showed to be very important multiple times quickly thereafter. It is not likely that the price will break through this resistance in one go, so if the price starts bullish on Monday we can expect a few attempts on this zone that we can monetize with a short each time.
Support level 1:
This is a crucial area at this moment, because the price has just fallen back a bit into this area. The first crucial question is, will the price start oscillating between support level 1 and 2, or will it move between support level 1 and the resistance?
To answer such a complicated question, I looked at markets that are open at the weekend since nearly all markets are so heavily correlated at this moment. When we look at the digital new gold bitcoin , we see that the prices have consistently been going up over the last few days.
I expect the price to bounce off this support zone and start trading in the upper area.
Support level 2:
This support area is really strong, seeing that it played an important role for four times in the very recent history. If the price breaks through support level 1, I expect it will slowly move down and find support here at support level 2. This could be monetized using a short trade, to be recognized after the market opens with a bearish momentum
Finally we have support level 3:
This support zone is going back all the way to November in '19 and has shown to function properly as a support zone before. Hopefully we won't be needing this support zone any time soon, but it might show up on future charts again.
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
Educational
If you want to learn more about how to place your limit orders including entry, stop-loss and take-profit, check out:
Note
The price is struggling a lot here on this area, but so far what we have seen is mostly bearish: That means that I will move to the bearish scenario of my idea:
"This support area is really strong, seeing that it played an important role for four times in the very recent history. If the price breaks through support level 1, I expect it will slowly move down and find support here at support level 2. This could be monetized using a short trade, to be recognized after the market opens with a bearish momentum"
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(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
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.
Thảo luận về những biến động và nói cùng nhau về thị trường giao dịch ở cộng đồng Telegram này nhé!
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
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.