Gold, specific ways to trade next week
The range between 1900 and 1930 in gold is a strong support level. (I am not suggesting going short or giving any specific advice regarding long or short positions).
In normal circumstances, the closer the price is to a support level, the stronger it tends to be. However, unexpected events can disrupt this pattern.
Keep an eye on the level around 1945 for the upcoming week. The closing price for this week is in the vicinity of 1945, which is both a weekly support and resistance level. Therefore, the price action on the first day of the following week will likely determine the overall trend for that week.
When the price approaches a resistance level, it is not advisable to chase upward movements. It is better to adopt a wait-and-see approach.
Similarly, when the price nears a support level, it is not suitable to aggressively sell. It is better to observe the market.
If the price falls to a support level or rises to a resistance level, it is necessary to analyze smaller timeframes to assess the strength of the support or resistance. Support and resistance levels are relative rather than absolute, so conducting analysis on smaller timeframes becomes crucial.
Therefore, when encountering support and resistance levels, smaller timeframe analysis is still important.
🧑🏫If you are a beginner
Strong support 1930-1900