The Gold market H4 – Demand might be increasing in the marketpla
The Gold market, on the H4 time-frame, was in a downward move until the 12th of November when a lower bottom was recorded at 1445.707. A Hammer Candlestick that formed at the lower bottom hinted that sellers could not take the price lower and demand started to overwhelm supply.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1448.303 and 1445.707. This could have alerted technical traders to a possible technical reversal.
After the lower bottom at 1445.707 the price broke through the 15 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into bullish terrain. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 13th of November at 1466.992. Sellers then tried to pull the market lower.
On the 14th of November Gold broke through the critical resistance level at 1466.992 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1466.992 and dragging it to a possible support level at the 34 Simple Moving Average at 1458.158, the following targets can be calculated. The first target can be anticipated at 1472.451 (161 %). The second price target can be predicted at 1481.285 (261.8%) and the third and final target may be expected at 1495.579 (423.6%).
If the support level at 1458.158 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the Gold market on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
A closer look revealed that the Momentum Oscillator displayed positive divergence between point a and b compared to the price at 1448.303 and 1445.707. This could have alerted technical traders to a possible technical reversal.
After the lower bottom at 1445.707 the price broke through the 15 Simple Moving Average and the Momentum Oscillator broke through the zero baseline into bullish terrain. This confirmed a possible price reversal or initial stages of a new trend.
A likely critical resistance level formed when a higher top was recorded on the 13th of November at 1466.992. Sellers then tried to pull the market lower.
On the 14th of November Gold broke through the critical resistance level at 1466.992 and a long position was triggered. Three possible price targets were projected from there. Attaching the Fibonacci tool to the top of the possible reversal at 1466.992 and dragging it to a possible support level at the 34 Simple Moving Average at 1458.158, the following targets can be calculated. The first target can be anticipated at 1472.451 (161 %). The second price target can be predicted at 1481.285 (261.8%) and the third and final target may be expected at 1495.579 (423.6%).
If the support level at 1458.158 is broken, the long position must be liquidated to protect trading capital and new scenarios must be re-evaluated.
As long as buyers maintain a positive attitude and demand overcomes supply, the outlook for the Gold market on the H4 time-frame will remain bullish.
Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.