The Gold Market, on the H4 time-frame, began an upward change in the beginning of March that lasted until the 25th of March when a higher top was recorded at 1324.568. The bears found prices attractive and supply overcame demand. The price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking through the zero baseline, both confirming a possible technical reversal in the making. This was further confirmed by a Shooting Star Candle that formed on 27 March during a pullback, indicating that demand were not able to sustain the upward drive.
A possible critical support level formed when a low was recorded at 1307.100 on the 28th of March. Buyers tried to push the market higher but it looks like supply is overcoming demand and a possible lower top was recorded at 1312.496.
If the price of Gold breaks through the critical support level at 1307.100, three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 1307.100 and dragging it to the top of possible resistance at 1312.496, the following targets may be calculated. The first target can be estimated at 1303.765 (161 %). The second price target can be expected at 1298.369 (261.8%) and the third and final target may be anticipated at 1289.638 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the Gold market on the H4 time-frame will remain bearish.
A possible critical support level formed when a low was recorded at 1307.100 on the 28th of March. Buyers tried to push the market higher but it looks like supply is overcoming demand and a possible lower top was recorded at 1312.496.
If the price of Gold breaks through the critical support level at 1307.100, three possible price targets may be projected from there. Attaching the Fibonacci tool to the bottom of the possible reversal at 1307.100 and dragging it to the top of possible resistance at 1312.496, the following targets may be calculated. The first target can be estimated at 1303.765 (161 %). The second price target can be expected at 1298.369 (261.8%) and the third and final target may be anticipated at 1289.638 (423.6%).
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the Gold market on the H4 time-frame will remain bearish.