The weekly chart for XAUUSD has formed a bullish engulfing candlestick pattern, indicating that the overall trend for gold in the upcoming days, or at least for this week, is bullish. We can also see these signals on the daily chart. Thus, we have identified the general trend for gold.
To determine and analyze its movement during this week, we move to lower time frames (from 8 hours to 1 hour), where we find that the price is moving in an upward channel.
It has reached the upper edge of the channel, which is also located in a supply zone and resistance level. We expect the price to correct towards at least 1846 before resuming its upward movement. It may correct further towards the level of 1830, and this scenario is not unlikely, especially since major economic institutions and banks prefer to enter at the lowest possible price to achieve maximum benefit. The price may then rise again, targeting the level of 1865 or even 1870.
It is strongly not recommended to trade against the trend unless with extreme caution.
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To determine and analyze its movement during this week, we move to lower time frames (from 8 hours to 1 hour), where we find that the price is moving in an upward channel.
It has reached the upper edge of the channel, which is also located in a supply zone and resistance level. We expect the price to correct towards at least 1846 before resuming its upward movement. It may correct further towards the level of 1830, and this scenario is not unlikely, especially since major economic institutions and banks prefer to enter at the lowest possible price to achieve maximum benefit. The price may then rise again, targeting the level of 1865 or even 1870.
It is strongly not recommended to trade against the trend unless with extreme caution.
-------------------------------------------------------------------------
Let me know your thoughts in the comments, and show your support by liking the idea.
Please follow if you're interested in more ideas like this.
Your support is greatly appreciated!