30-04-2023
In this article, we will be discussing the recent trends in gold trading and what to expect in the upcoming week.
The gold market has been trading within a fairly narrow range, with attempts to breach the 1980 level but failing to sustain on the downside. However, not even a single candle has closed below the 1980 level, indicating a sign of consolidation with lower highs and higher lows.
This could potentially mean that a breakout is awaited, but which direction it is going to be in is still uncertain.
Entry:
Wait for the dollar index to break above 101.4 levels on the daily chart.
Once it breaks above this level, consider going long on the dollar index.
Exit:
Place a stop loss below 100.5 levels to limit potential losses.
Take profit at 101.5 levels for a short-term trade, or consider holding for a longer-term trade with a target of 102.8 levels.
If the dollar index fails to break above 101.4 levels, consider waiting for a better entry opportunity or avoiding the trade altogether.
Looking at the movement of gold on the charts, there is a triple bottom followed by a rally and then consolidation, with a breakout. It has since retraced, forming a double bottom and is now consolidating once again. However, it has already shown a breakout from its bullish channel, indicating higher lows and lower highs.
Once it breaks past 2020 levels, we can expect another round of rise that could take it towards 2050-2075 levels.
If the price stays above 2000, it would be a good buy opportunity for traders, but it's better to wait for 2005-2010 levels to be breached before expecting further bullish momentum. On the other hand, if it closes below 1980, we can expect a good bearish momentum. The support levels for this would be around 1950-40 and then 1900 levels.
On the weekly charts, we can see a reversal sign with a sharp tail indicating a downward pressure. However, it has formed a channel with lower highs and higher lows, indicating a breakout in either direction. A breakout below 1980 and 1970 levels could bring bearishness, while a breakout above 2010 pivot could take it past 2050 levels.
In conclusion, we can expect a potential breakout in the gold market, but we should wait for it to happen before taking any positions. The levels to watch out for are 2010-2020 on the upside and 1970-1980 on the downside. If a breakout occurs, we can expect to see prices move towards 1900-1920 levels. Traders should exercise caution and keep an eye on the support and resistance levels mentioned above.
The information provided is for educational and informational purposes only and should not be construed as financial or investment advice.
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