Now let's do a Technical Analysis of Gold

Namaste to all traders and investors. 🙏

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In the thumbnail of my previous blog, I had written "Hold the Gold" because it was about investing in gold, but since this blog is about trading in gold, I have to analyze it here keeping in mind the traders' point of view. And I don't want to say this, but there can be a possibility that we may see some decline in gold prices from here.
Let us understand why.

You must remember how there was a big fall in gold prices after making a new all-time high in December. After this, an attempt was made to push the prices high in another round of buying but almost no interest was seen from big players.

What? You wanna know how can I say that?

First of all let's divide the chart into 2 parts. The vertical blue dotted line in the centre marks the day the new all-time high was made in December.
In the price action to the left, you can see that the price is in a trend and every time it breaks its previous high, a follow-through candle is formed. Which symbolizes strength in the trend.
Apart from the first big green candle formed after the fall in the price action on the right side, you will notice that the trend remained sideways most of the time and even when it was broken, there was no continuous follow-through move.
Source | 4-hour time frame chart oF GOLD (XAU/USD)
After which from December 28 we saw the trend becoming downwards. And now the price seems to be trading in a range. While looking at the current price action it seems that the price will face a major resistance between 2040 to 2050. If it breaks upwards then the previous swing high 2060 and then 2080 will be acting as the next resistance.
But if the prices follow the current trend then there will be a big fall in gold from here which will then push the price down to 1995 to 1990.
Just because you now know the levels does not mean that as soon as the price reaches a level you start trading without confirmation with a biased mindset. No one can say with accuracy whether the price will rise or fall after reaching some level. And if someone is saying this then first of all stop following such people.
Financial trading without confirmation is nothing less than gambling. If you want to gamble then go to a casino it will be more fun there. But if you consider it a business then do it seriously like a business.
In my next blog, I will tell you what things you should keep in mind just before taking a trade. Also, we will discuss a strategy, which works brilliantly not only for trading but for investing too.

Thank you for being here and appreciating my blog!

English is not my first language. So sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.

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