GOLD is ready for a rally
Updated
Greetings Traders,
Gold has been in a continuous downtrend since June, 2021 followed by a major crash on 9th August, 2021 which pushed the gold prices to as low as ~1,680 $ to the support level of April - June, 2020 and March, 2021. But the crash was soon followed by strong buying of Gold which resulted in daily candle closure above upper demand zone, but that upward momentum was unable to break the supply zone range of 1,830$ - 1,835$ which pushed the prices downward to 1,725$ - 1,720$ Demand zone once again while forming double Bottom at Daily chart along with Bullish RSI divergence as shown above.
It was also forming Expanding Falling wedge Pattern as shown below in 4hr chart:
The Wave E was completed at the Demand zone, the bounce from strong Demand zone area showing Bullish RSI divergence in 4hr and 1d charts pushed the prices to upper trendline resistance of wedge at current level.
Currently it is also making inverse Cup & Handle pattern on 1hr chart which is about to break upward soon as shown in the 1hr chart below:
The current upward momentum and the Bullish chart patterns forming on different timeframes are indicating a strong upward movement. This momentum will act as the push needed for Gold to break its Supply Zone and Resistances allowing it to make a good upward rally in upcoming days.
There is a good possibility of a new All-Time-High in upcoming Weeks / Months as well.
~Regards
~Syed Hamza
Gold has been in a continuous downtrend since June, 2021 followed by a major crash on 9th August, 2021 which pushed the gold prices to as low as ~1,680 $ to the support level of April - June, 2020 and March, 2021. But the crash was soon followed by strong buying of Gold which resulted in daily candle closure above upper demand zone, but that upward momentum was unable to break the supply zone range of 1,830$ - 1,835$ which pushed the prices downward to 1,725$ - 1,720$ Demand zone once again while forming double Bottom at Daily chart along with Bullish RSI divergence as shown above.
It was also forming Expanding Falling wedge Pattern as shown below in 4hr chart:
The Wave E was completed at the Demand zone, the bounce from strong Demand zone area showing Bullish RSI divergence in 4hr and 1d charts pushed the prices to upper trendline resistance of wedge at current level.
Currently it is also making inverse Cup & Handle pattern on 1hr chart which is about to break upward soon as shown in the 1hr chart below:
The current upward momentum and the Bullish chart patterns forming on different timeframes are indicating a strong upward movement. This momentum will act as the push needed for Gold to break its Supply Zone and Resistances allowing it to make a good upward rally in upcoming days.
There is a good possibility of a new All-Time-High in upcoming Weeks / Months as well.
~Regards
~Syed Hamza
Note
Target 1 AchievedTrade closed: target reached
Target 3 was successfully hit some days ago
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