Gold, on the H4 chart, was in a steep downtrend from the middle of February until the beginning March when buyers found the price attractive and started countering selling pressure. For a time, there was a balance between demand and supply and the resulting range lasted until the 8th of March, when demand completely overwhelmed supply. The market broke through the 15 and 34 Simple Moving Averages and the Momentum Oscillator pierced the zero baseline, both confirming the possible technical reversal in the market.
A Three White Soldier Candle Pattern as well as a Golden Cross provided further confirmation that the bulls were entering the market in large numbers and a critical resistance level was created at 1300.786. The bears temporarily managed to bring prices lower and a bottom was recorded at 1290.435.
If the price of Gold breaks through the critical resistance level at 1300.786, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1300.786 and dragging it to the bottom of the pullback at 1290.435, the following targets may be calculated. The first target can be anticipated at 1307.183 (161 %). The second price target can be projected at 1317.535 (261.8%) and the third and final target may be expected at 1334.284 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold market on the H4 timeframe will remain bullish.
A Three White Soldier Candle Pattern as well as a Golden Cross provided further confirmation that the bulls were entering the market in large numbers and a critical resistance level was created at 1300.786. The bears temporarily managed to bring prices lower and a bottom was recorded at 1290.435.
If the price of Gold breaks through the critical resistance level at 1300.786, three possible price targets may be estimated from there. Attaching the Fibonacci tool to the top of the possible reversal at 1300.786 and dragging it to the bottom of the pullback at 1290.435, the following targets may be calculated. The first target can be anticipated at 1307.183 (161 %). The second price target can be projected at 1317.535 (261.8%) and the third and final target may be expected at 1334.284 (423.6%).
As long as buyers maintain a positive sentiment and demand overcomes supply, the outlook for the Gold market on the H4 timeframe will remain bullish.