The Gold market, on the D1 time-frame, was in an upward move until 4th of September when a higher top was recorded at 1557.074. Supply overwhelmed demand and some upward momentum was annulled.
A closer look revealed that the Momentum Oscillator displayed negative divergence between point a and b compared to the price at 1527.086 and 1557.074. This could have alerted technical traders to a possible technical reversal in the making.
After the high at 1557.074, the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into negative terrain. This further confirmed the possible price reversal or initial stages of a new trend.
A possible critical support level formed when a lower bottom was recorded at 1484.249 on the 10th of September. Buyers tried to push the market higher but supply overcame demand with a possible resistance level that formed after a Shooting Star Candle on the 12th of September near the 34 Simple Moving Average at 1525.817.
If Gold breaks through the critical support level at 1484.249, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1484.249 and dragging it to the top of the possible resistance level at 1525.817, the following targets may be calculated. The first target can be anticipated at 1458.560 (161 %). The second price target can be predicted at 1416.992 (261.8%) and the third and final target may be expected at 1349.735 (423.6%).
If the resistance level at 1525.817 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the Gold market on the D1 time-frame will remain bearish.
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 negative divergence between point a and b compared to the price at 1527.086 and 1557.074. This could have alerted technical traders to a possible technical reversal in the making.
After the high at 1557.074, the price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke through the zero baseline into negative terrain. This further confirmed the possible price reversal or initial stages of a new trend.
A possible critical support level formed when a lower bottom was recorded at 1484.249 on the 10th of September. Buyers tried to push the market higher but supply overcame demand with a possible resistance level that formed after a Shooting Star Candle on the 12th of September near the 34 Simple Moving Average at 1525.817.
If Gold breaks through the critical support level at 1484.249, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 1484.249 and dragging it to the top of the possible resistance level at 1525.817, the following targets may be calculated. The first target can be anticipated at 1458.560 (161 %). The second price target can be predicted at 1416.992 (261.8%) and the third and final target may be expected at 1349.735 (423.6%).
If the resistance level at 1525.817 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the Gold market on the D1 time-frame will remain bearish.
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.