Support and Resistance Gold Analysis & Support & Resistance Trade Signals

Support & Resistance is one of the widely used concepts in gold trading. Most traders draw the horizontal lines to explain these technical levels.

There is also an indicator used to draw these levels automatically & indicate the resistance and support areas.

Support & Resistance Technical Indicator - Support & Resistance Levels Indicator - Support & Resistance Areas

In these technical levels price can either bounce off these levels or breakout through these regions.

If a resistance zone is broken gold price will move higher & the resistance zone will turn to a support.

If a support level is broken gold price will move lower & this level will turn to a resistance.

Price where the majority of traders believe that the prices will move higher, while resistance levels indicate the price at which a majority of investors feel xauusd prices will move lower.

Once gold price has broken through a support or a resistance then it is likely that the xauusd price will continue moving in that specific direction until such a time when it gets to the next support or resistance zone.

The more often a support resistance level is tested or is touched by the gold price & bounces, the more major that particular level becomes.