GOLD: Most Important Levels - Prepare the week with Trading-GuruIn this technical analysis I will go into depth on gold and explain how to trade an asset closely after it has reached its All-Time-High.
Using the chart I will explain you about all the horizontal levels you should add to your chart and explain more about how to trade gold right now.
Gold has been in a tremendous uptrend not only recently, but over the last years. As an asset that almost exclusively goes up, we have some things we need to keep into consideration as traders.
First of all, we need to make sure that if we take a short position you don't hold it for too long. Ultimately time will be against you. Use it for hours or maximum a few days to speculate on price drops.
Second of all, when entering gold (XAU/USD) with a long position the most important part is finding a good entry.
It's easy to FOMO inside any pair when it's going up and up and up. Don't do this. Try to stick to the age old principle of buying low and selling high.
Wait for a moment where the price retraces slightly, such as ... right now! The price is a good 8% under the ATH which gives us some more room to trade.
In this chart I highlight two opportunities. A 4.6% trade opportunity towards the nearest resistance zone and an 8% opportunity towards the second level.
For both of these, a good entry is crucial. Such entry can be found near the first level of support. The second level of support can be utilized for a stoploss or a more conservative entry if you're looking for higher risk-reward trades.
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
