In this technical analysis I will discuss in-depth how you can prepare for some gold trades this week.
From my previous ideas you can see why I decided to add certain horizontal levels to the chart and how to use them. You might also have seen that I have been quite bullish on gold and that I was surprised how much it has dropped recently.
That's why this time I am doing things slightly differently. Instead of highlighting a specific price zone, I am highlighting the entire area between $1750 and $1800. This is a zone where the price might fluctuate but if you can still get a buy in anywhere here (obviously the lower the better) you'd be in a great position for the coming week.
If you buy anywhere in this zone I'd say you probably got a great price for Gold. Knowing you can buy it now at between $1750 and $1800 while it has been $2080 just recently seems like a great deal.
The price of gold is already moving upwards if you look close on the 1h and seems to get close to the first zone of resistance. This will be a major test to see if the bulls are strong enough to push gold up again or whether the bears prevail and we test the $1750 levels once again.
In any case I this retracement as a fantastic buy opportunity. And if you're in doubt because you see the negative sentiment on the lower timeframes, make sure to zoom out one time and look at the gold chart on the weekly or monthly time frame. You'll see that on average it has a great tendency to go up over time, so a retracement this big I think is a great buy opportunity.
@GoldenWolFCharts, Love the color scheme on yours!
Slippery09
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Caught a beautiful short scalp to entry too!
Trading-Guru
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@Slippery09, ohhh, sweet! This is a fantastic entry
Trading-Guru
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@Slippery09, what's your target? Difficult to see from the screenshot
uglyazzcreepervibes
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Do you recommend buying physical or paper gold? Thank you for the chart.
Trading-Guru
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@alyssaluv, The major drawback of physical gold vs paper gold is that it's much harder to sell physical gold if you need the liquidity. The major advantage of physical gold is that it can be much safer to hold onto for a longer period of time. Overall I would suggest paper gold as the pricing is more transparent and you are more certain you can get a good deal.
biladytrucker
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@alyssaluv, my personal opinion I buy physical gold in the long run it' will outweigh paper gold.were $27 trillion plus in debt on the US dollar, if you owned paper gold who's to say you're going to get your money back if the stock markets crashed at least with physical gold you know what you have and you know what you own and you know what it's worth that's why I buy gold and silver physically.
lmulhare
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Thanks for sharing :)
Smalley_4
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Mid term long term gold bears think a vaccine is bad news. They seem to forget about the over extended equity markets were experiencing along inflation resulting from low interest rates
Good Analysis .. Check mine too have same point