Gold analysis on volume profile during the next week
Based on the chart, we can observe a downward movement in the price of gold. Additionally, the price has tested the descending trendline (represented by the blue line) more than three times. This indicates the strength of the downward movement. It is important to note the key areas where the price is likely to bounce.
The support levels at 1906/1896 are expected to be strong. This is because the price previously originated from this area, and there is also a good buying order presence. Furthermore, it serves as a suitable accumulation zone for whales (large traders).
On the other hand, the resistance levels at 1952 and 1966 will be challenging to break through due to strong selling pressure. Additionally, the price has not tested these areas before, and they are considered potential price collapse zones.
One highly critical area is the price gap zone (1940/1945), which is characterized by violent price movements. Such situations often result in significant losses for traders. Caution should be exercised when trading around these zones. When the price reaches the price gap, traders may open sell positions, only to find the price reversing strongly, resulting in substantial losses, or vice versa.
Hence, trading in these areas can be extremely challenging for beginners.
The support levels at 1906/1896 are expected to be strong. This is because the price previously originated from this area, and there is also a good buying order presence. Furthermore, it serves as a suitable accumulation zone for whales (large traders).
On the other hand, the resistance levels at 1952 and 1966 will be challenging to break through due to strong selling pressure. Additionally, the price has not tested these areas before, and they are considered potential price collapse zones.
One highly critical area is the price gap zone (1940/1945), which is characterized by violent price movements. Such situations often result in significant losses for traders. Caution should be exercised when trading around these zones. When the price reaches the price gap, traders may open sell positions, only to find the price reversing strongly, resulting in substantial losses, or vice versa.
Hence, trading in these areas can be extremely challenging for beginners.