Gold XAUUSD, Silver XAGUSD support and resistance zones

Rules for support and resistance

  1. Support and resistance zones are potential turning points for price movement
  2. Therefore support and resistance zones are good stop loss and target price regions
  3. We prefer zones or regions because there is no single level that works best
  4. Support and resistance zones that are easiest to identify are those using previous horizontal highs and lows
  5. Support and resistance can also come from Fibonacci Retracements, Projections
  6. For traders looking for SL or TP, the easiest method is to draw horizontal levels based on previous peaks and troughs
  7. When previous points are no longer available, Fib-projections come in as a forecast


Trend, support for Gold XAUUSD

  • Month-month uptrend.
  • Week-week uptrend.
  • Year-year downtrend.
Gold supports drawn from previous horizontal highs and lows

Gold supports based on previous peaks and troughs

  1. First level to watch is last week’s low. Retaining this level means that gold price can continue week-week trend. This level is good because it also happens to be a previous support resistance level based on the precedence that we can see marked by green stars.
  2. Next level is last month’s high. This level also has history as a turning point marked by purple stars.
  3. Next level is 3 week low.
  4. Last and most important level is $1180 which I discussed many times here, here and here. If price stays above, this is a multi-year support and a good base for bulls to launch a gold bottom and bullish reversal. Below? Fail.


Resistance, target for Gold XAUUSD

  1. First level is 2014-minor high or July and February market by blue stars.
  2. Next prominent level is 2014-high itself marked by red star. This level is a significant level to watch because above here, price signals a year-year reversal.
2 targets to look at for Gold is 2014-high and minor-high

If price goes even higher, we have to use bigger chart


Trend, support for Silver XAGUSD

  • Month-month uptrend.
  • Week-week uptrend.
  • Year-year downtrend.
Silver supports drawn from previous highs, lows

Silver supports based on previous peaks and troughs


Resistance, target for Silver XAGUSD

It is clear from the chart that Silver XAGUSD is at a very strong resistance already highlighted in this post. This level is as strong a resistance for XAGUSD as $1180 is strong as a support for XAUUSD.

Silver targets

Silver is now capped by very strong previous low turn resistance

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