Gold Market Technical Analysis 15th - 19th August 2022
Greeting to all traders and welcome back to another blog of our weekly Gold market analysis. We will start off with the weekly candlestick pattern analysis.
In the previous week, the gold price has continued to rally up with minor correction when it reaches around 1807-1808 USD price range.
Then the price has rallied up once again at the end of the previous week, which make the previous weekly candlestick very bullish with a lot of candle’s body. This candlestick indicates high buy volume and the gold price can rally up further in the upcoming week.
Next we take a look at the previous daily candlestick from last Friday, which is a bullish candle with full body and closes higher that the previous daily candlestick. The candlestick pattern in the daily timeframe indicates that the price will most likely continue to rally up further on Monday.
Even though the market trend is up in the daily timeframe, the price is current in the supply zone and resistance level around 1800-1810 USD price range. Therefore buying in this area requires extra precautions and confirming signal/pattern is recommended for buy order executions.
We recommend buying in the demand zone around 1740 USD, which also has a support level.
But if the price cannot break the previous high around 1808 USD and retraces back down, we can consider buying at the 1770-1760 USD range.
For selling idea, if the price breaks the previous high and there is a bearish classic divergence signal, we can consider selling at the area around 1807-1812 USD.
In the big picture, the gold price has rallied up close to the resistance level and supply zone of the higher timeframe so buying in this area requires proper risk management and confirming signal.
Same for selling in this area because the market is still in an uptrend.
In summary, we can consider selling if the price breaks the previous high in the beginning of next week and there is a bearish classic divergence signal. But if the price cannot break the previous high and retrace back down, we can consider buying at the 1770-1760 USD price range.
Please trade at your own risks with a good money management strategy.
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