Should You Buy Gold? Yes, But Not Yet! Check It Out
Hello there! I want to be detailed on Gold in this analysis. I just decide to post an idea about it because I discovered something in the H4 timeframe that looks different from the other timeframes like the H1, 1D, 1W, and even the 1M, which can make some traders make the wrong decision going against the next market move. But first, I want to show you something in the monthly timeframe chart, then I will post the H4 chart to see what could happen when the Gold market opens. Look at the monthly analysis well so that you can understand what is going on now and what could happen next in the Gold market currently.
Monthly Timeframe
In the monthly chart above, you can see that the Gold market has rejected the strong support level by forming a small bullish pin bar at the key support area. Warning: you must be careful here if you are deciding to sell Gold. The pin bar is not a classic kind though, it can have a bullish effect on the Gold price movement in the coming week. As a result, be very careful. Why? It's because ofe the context where the pin bar candlestick has appeared matters!
Daily Timeframe
In the daily timeframe, an engulfing candle, but not so strong, has formed at the key support level area, signaling the reversal to the upside. So, the Monday candle could close with a "wick below".
H4 Timeframe
In the H4 timeframe, there is a tendency for the price to experience a short-term bearishness, to reverse to the support level, creating a "W" or double top pattern before completely taking a rally to the upside. This means we can make sell trade decisions here and exit close to the support, not exactly at the support level though. Why the bearishness? The inside bars have formed at the key resistance level, showing a loss of momentum in the bulls of
[I]Finally, the timeframe to pay much attention to is H4 for now because a bearish pin bar has formed in it. Take note of this and the stochastic seems to be going bearish, moving away from the overbought zone
Monthly Timeframe
In the monthly chart above, you can see that the Gold market has rejected the strong support level by forming a small bullish pin bar at the key support area. Warning: you must be careful here if you are deciding to sell Gold. The pin bar is not a classic kind though, it can have a bullish effect on the Gold price movement in the coming week. As a result, be very careful. Why? It's because ofe the context where the pin bar candlestick has appeared matters!
Daily Timeframe
In the daily timeframe, an engulfing candle, but not so strong, has formed at the key support level area, signaling the reversal to the upside. So, the Monday candle could close with a "wick below".
H4 Timeframe
In the H4 timeframe, there is a tendency for the price to experience a short-term bearishness, to reverse to the support level, creating a "W" or double top pattern before completely taking a rally to the upside. This means we can make sell trade decisions here and exit close to the support, not exactly at the support level though. Why the bearishness? The inside bars have formed at the key resistance level, showing a loss of momentum in the bulls of
[I]Finally, the timeframe to pay much attention to is H4 for now because a bearish pin bar has formed in it. Take note of this and the stochastic seems to be going bearish, moving away from the overbought zone
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