Gold (XAUUSD) 05-07-2024
XAUUSD has been trending higher since it moved from the accumulation or range of a low 1633 and 2041 high. I therefore frame that the long term trend of the golden commodity is bullish. Having established bulls in the golden market, I review recent golden prices, i.e. recent prices of gold.I quickly see that gold is trapped again in a range. On the calendar week 15, gold made a high of the week on 12-04-2024 at 2428.477 (approximately on the Mt4 platform I use) and a low of the week (week 18) on 03-005-2024 at price 2288.825. This area of resistance is repeated after 3 weeks on 20-05-2024 (week 21). In this scenario, price broke through the resistance area and came below it - some traders call this a break out. I stick to simple resistance and support but occasionally I can use other terms as well. The low of the week 18 was repeated on week 23 (07-06-2024). I actually chose this price level because the price went a little below 2288.825 in week 18 - a slight break out to the downside.
Having identified that the market is ranging, any trader would want to trade with caution. Should price break above the high of the week (week 25) on 21-06-2024, then we can expect bulls to take the commodity to 2428. From this price level, traders have to wait to see if this "resistance" level would be broken to the upside.
Long term trend: Bullish
Weekly trend: Bullish
Even though gold is bullish, the dilemma of trading it is that we don't have a historical price area beyond 2449, high of the week ( week 21) on 20-05-2024, as a reference point of supply or resistance area. This is where patience is needed, risk management (1%) of your trading account, to understand where the next bullish price will be.
Disclaimer: Not a trading advice, for educational trading purpose only
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.
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.