Gold Analysis – A Classic Bullish Continuation Structure Forming

Gold Analysis – A Classic Bullish Continuation Structure Forming

- After a long consolidation in the gold, the initial rally (aka first leg) gave a ~26% upside move.
- RSI confirmed the move with a steady bullish trendline through the rally phase.

- After the first rally, Gold started a moderate corrective pullback.
- The correction found support near the 20 EMA, signaling that buyers were still active.

- The initial rally & the corrective pullback created a Bullish Pennant Structure
- The prices are currently trending close to the upper zone of the Pennant

- The pattern also aligns with RSI, which is consolidating in a sideways channel, while trending in the buying zone abpve neutral level.

Expected - Second Leg
- If price gives a bullish breakout above the pennant, prices could rise to form the second leg.
- The projected measured move suggests a potential rally of ~26%, similar to the first leg.

The zone between 4930 & 4952 might act as a strong target zone, which also aligns with Fib ext level 1.618 (4930)

A clean breakout from the pennant is critical for bullish continuation.

------------ This is still an alternative scenario - for my weekly analysis-------------------------
----- It it fails, and gold gives a bullish breakout as above, then ~5000 could be seen-------