Gold Market H4 – Possible upward momentum building
The Gold Market, on the H4 chart, was in a downtrend from the 25th of March until the 2nd of April when a lower bottom was recorded at 1285.426. Buyers found the price attractive and demand started overwhelming supply.
The price broke through the 15 Simple Moving Average with the Momentum Oscillator touching the zero baseline, both clues that a possible technical reversal might be in progress.
A probable critical resistance level formed when a high was recorded at 1294.684 on the 3rd of April. Sellers temporarily pulled prices back and a higher bottom formed at 1288.492 before buyers again started entering the market. This was confirmed by a Hammer Candle that occurred during the pullback and the Momentum Oscillator breaking the zero baseline soon after.
If the price of Gold breaks through the critical resistance level at 1294.684 as well as the 34 Simple Moving Average, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the resistance level at 1294.684 and dragging it to the bottom of the pullback at 1288.492, the following targets may be calculated. The first target can be anticipated at 1298.511 (161 %). The second price target can be predicted at 1304.703 (261.8%) and the third and final target may be expected at 1314.723 (423.6%).
If the bottom at 1288.492 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold market on the H4 time-frame will remain bullish.
The price broke through the 15 Simple Moving Average with the Momentum Oscillator touching the zero baseline, both clues that a possible technical reversal might be in progress.
A probable critical resistance level formed when a high was recorded at 1294.684 on the 3rd of April. Sellers temporarily pulled prices back and a higher bottom formed at 1288.492 before buyers again started entering the market. This was confirmed by a Hammer Candle that occurred during the pullback and the Momentum Oscillator breaking the zero baseline soon after.
If the price of Gold breaks through the critical resistance level at 1294.684 as well as the 34 Simple Moving Average, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the resistance level at 1294.684 and dragging it to the bottom of the pullback at 1288.492, the following targets may be calculated. The first target can be anticipated at 1298.511 (161 %). The second price target can be predicted at 1304.703 (261.8%) and the third and final target may be expected at 1314.723 (423.6%).
If the bottom at 1288.492 is broken, the possible scenario is invalidated and will need to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold market on the H4 time-frame will remain bullish.
Time to be patient.
A quote from Warren Buffet:"The markets are instruments for transferring funds for the impatient to patient".