Gold is the best hedging instrument
Every sound investor knows that when the market turns grim, the best place to put their money is in Gold, Gold has always performed well during the times of crisis be it the 2008 crash or the covid downfall, or even in the recent Russo-Ukraine series of events.
Although the price of gold remains very volatile, today I will try to put forward my technical view regarding gold.
Monthly analysis:
Gold has been trading with a median price of around $1800 since the covid outbreak, but recently after Russia invaded Ukraine, the price of gold shot up and almost made another all-time high, but it couldn't hold the levels and fell down rather sharply and currently, it is trading in a strong support zone.
Weekly analysis:
The price of gold has been taking support from an inclined trendline since August 2021, with the continuous formation of higher highs and higher low formations, currently, the price is trading at the support trendline currently and a position can be created according to whether it breaks the trendline or if it takes support from it again.
Daily analysis:
This is where the things get interesting, on the daily timeframe the price is currently trading at yet another recent support which also happens to concur with the weekly support trendline. Thus any bullish candle formation can indicate that a long position can be created and on the breakdown of the trendline we can short XAUUSD.
In a nutshell:
XAUUSD
View - Neutral
Formation of a double top on the monthly timeframe.
Price trading on support zone in the weekly and daily timeframe.
A possible plan of action:
Bullish above $1865 with SL of 1848.
Bearish below $1848 with SL of 1866
Thank You
Every sound investor knows that when the market turns grim, the best place to put their money is in Gold, Gold has always performed well during the times of crisis be it the 2008 crash or the covid downfall, or even in the recent Russo-Ukraine series of events.
Although the price of gold remains very volatile, today I will try to put forward my technical view regarding gold.
Monthly analysis:
Gold has been trading with a median price of around $1800 since the covid outbreak, but recently after Russia invaded Ukraine, the price of gold shot up and almost made another all-time high, but it couldn't hold the levels and fell down rather sharply and currently, it is trading in a strong support zone.
Weekly analysis:
The price of gold has been taking support from an inclined trendline since August 2021, with the continuous formation of higher highs and higher low formations, currently, the price is trading at the support trendline currently and a position can be created according to whether it breaks the trendline or if it takes support from it again.
Daily analysis:
This is where the things get interesting, on the daily timeframe the price is currently trading at yet another recent support which also happens to concur with the weekly support trendline. Thus any bullish candle formation can indicate that a long position can be created and on the breakdown of the trendline we can short XAUUSD.
In a nutshell:
XAUUSD
View - Neutral
Formation of a double top on the monthly timeframe.
Price trading on support zone in the weekly and daily timeframe.
A possible plan of action:
Bullish above $1865 with SL of 1848.
Bearish below $1848 with SL of 1866
Thank You