Gold
I am a long term stacker of physical gold which means obviously I am really bullish on the price of the yellow metal but in short term it trades in a range which can be taken advantage of.
Look at the below daily chart for the US Gold spot price.
I use Investing.com or Tradingview.com as my charting tools.
As you can see, Gold has been trading in a range with a high of $2070 and $1680 on the lower side for 20 months now starting from August of 2020 .
The ATH which is just above $2000 is a strong selling zone with a lot of resistance so I don't feel institutional banks will let it break that price upwards soon. It took gold 19 months to reach the same price as August 2020 high so it is fair to speculate that this time gold will be below that level for at least 3-6 months should there be an ultra bullish buying entering the market.
But since I am a trader I look to trade the nearest trading setups more as opposed to long term ones.
If we zoom in, the picture is different for the weekly outlook.
After zooming in you'll realize that the current level at about $1919 is a very strong support zone as of now with price bouncing off that level twice.
On 16th March, 2022 for first arrow and 29th March,2022 for second arrow.
The price has not reached that mark yet since we closed previous week at about $1929 so about $10 off of the support zone in question.
Strategy
I will be observing the price on Monday from the sidelines and hopefully the price will decline to the support zone and give me signals of support there (Indecision candles or the small ones).
I will look to take a buy position with a stop loss of $1890 because I think it'll be a free fall from there since the current strong support will be broken then.
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Take care. Peace out.
Posted Using LeoFinance Beta