GOLD #XAU

On the W timeframe, looking at Base 1 which is holding the price.
The issue here is that Base 1 held the price once at the area I circled in white, the price pushed up, showing strong buying power, but later that area failed to hold the price when it returned a second time, which is the area circled in yellow.
Simply put: you are a big whale, you have a lot of money, you bet on a bullish move, you buy a lot in the first wave at the area circled in white, then the price rises and you are still holding profits. But then the market doesn't go your way, the price comes back down to your entry and even goes deeper than your previous buy entry.
What will you do at this point?
- cut even.
- hold the stop-loss order
- hold and DCA
This depends on your psychology, but from my chart reading, I see the sellers are stronger than the buyers.
In the selling process, I see Base 3 as the nearest resistance area, meaning for the price to rise strongly, it needs to break through Base 3.
Looking at the Base 2 area on the W and also M timeframes, I see that the potential of Base 2 is still much better than Base 1, if considering long-term.