Gold trading Price
Welcome to our daily technical analysis video by Naeem Aslam of AvaTrade. In today’s segment we are going to look at gold prices ☑️☑️ Watch now!
Good morning folks, this is Naeem Aslam, chief market analyst at AvaTrade and welcome to our daily technical analysis video. In today’s segment we are going to look at gold prices.
Why? Because gold points is happening in a very strong uptrend and on friday the price closed above the critical level of 1902. This was the first time in nearly 11 years, let’s say, that the price has closed above this particular level. So let’s have a look at the price and then let’s see what this really means in terms of a price action.
So, first of all, for disclosures – anything which will be discussed in this particular video cannot be perceived as an advice. If you are seeking for one please do consider consulting with your own financial advisors.
The fullest demo is in front of you so let me bring out the MT4 platform and as always we will begin the price analysis by looking at the weekly timeframe.
But something that i kind of wanted to do is a bit different because obviously this is the first time good price is coming into this important level of resistance.
So, we have to go back even from a weekly time frame to monthly time frame. Why? Because the weekly time frame doesn’t really give us the full picture with respect to the price action.
Now remember folks we have talked about this several times in our various different articles that when it comes to gold price it is not about the price touching the 1900 level, or it is not about the touching all-time high.
The next price level for me, especially from my own perspective, is about gold prices touching that 2000 level. You know right over here that is where the psychological resistance is and then that’s where the really things matter now in.
Or you can see that if you wanted to make this property but right now as you can see that the price is 2013, right, but i think that the psychological level with respect to this price action is 2000.
So in order to change that you right click it and then you change it over here the value and now you will see that the value of the trend line has changed to 2000, which for me is the major resistance line now.
Before that the all-time high is at 1921 and that is the points which is really going to remain under focus in this particular week, as you can see on the weekly chart as well but what we really kind of need to pay attention to is this explosive move that we have seen last week.
And this particular explosive move can really meet with some sort of a retracement this particular week. Why? Because the prices have been going straight up in a very vertical way.
The price is very far from his 50-week moving average, and also, from its 100-week price average, as well. So because this is your 50 week price average, this is your 100 and this is your 200-week moving average.
So you know one wants to pay some sort of attention with respect to the price levels that yes the momentum is very strong, yes it is very likely for the prices to continue the journey to the upside.
But what we kind of wanted to pay attention to is that you know it is likely for these prices to continue their journey to the upside, but retracement is due.
Retracement is on the card so you’ve got to be very much mindful of that. Now when we go back to the daily time frame and then we really look at the price action from that. Then we’re going to look at that.
Okay you know where is the next level of support. If the price does retrace then how far can the retracement can happen? I believe that retracement can really happen between 1818 level to all the way to 1795 or 1792.
So this area of consolidation on the daily time frame could really be the area if the price starts to consolidate from here, it starts to fall and retrace from here.
This area of consolidation is where you can see possible entry point, but if that doesn’t happen then that 1768. This particular level where the 50-day moving average is trading is also a very very interesting point and this is where the price can also you know form some sort of a support in the coming days.
So keep an eye on that and then let’s see how the points will develop from here on this. Alright folks that’s all for today see you guys next time.
See a trading opportunity? Open an account now!