The Gold market, on the H4 chart, was in a downtrend from the 25th of March until the 4th of April. Demand then started to overwhelmed supply after buyers began to find prices appealing. The price broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator sliced through the zero baseline. A Hammer Candle as well as a cross of the 15 and 34 Simple Moving Averages, called Golden Cross, confirmed the possible technical reversal in progress.
A critical resistance level formed after a higher top was recorded at 1303.868 on the 8th of April and the bears temporarily managed to push prices lower with a bottom that was recorded at 1296.287 on the same day.
If the price of Gold breaks through the critical resistance level at 1303.868, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1303.868 and dragging it to the bottom of the pullback at 1296.287, the following targets may be calculated. The first target can be anticipated at 1308.553 (161 %). The second price target can be projected at 1316.134 (261.8%) and the third and final target may be expected at 1328.400 (423.6%).
If the bottom at 1296.287 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold currency pair on the H4 time-frame will remain bullish.
A critical resistance level formed after a higher top was recorded at 1303.868 on the 8th of April and the bears temporarily managed to push prices lower with a bottom that was recorded at 1296.287 on the same day.
If the price of Gold breaks through the critical resistance level at 1303.868, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1303.868 and dragging it to the bottom of the pullback at 1296.287, the following targets may be calculated. The first target can be anticipated at 1308.553 (161 %). The second price target can be projected at 1316.134 (261.8%) and the third and final target may be expected at 1328.400 (423.6%).
If the bottom at 1296.287 is broken, the possible scenario is invalidated and needs to be re-evaluated.
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold currency pair on the H4 time-frame will remain bullish.