On the 1-hour chart, gold continues to demonstrate a consistent bullish structure, indicated by the formation of higher highs (HH) and higher lows (HL). Although there was a temporary correction during the European session, prices have shown resilience around the 50% Fibonacci retracement level, signaling the potential for a rebound. This correction is more indicative of a healthy consolidation phase within an upward trend, rather than a sign of weakening. Such a situation opens up opportunities for buyers to regain control, especially as we approach the US session tonight.
Moreover, supporting technical indicators also bolster the upward outlook for gold. The zigzag indicator, Moving Average (MA), and MACD are all displaying solid bullish tendencies, keeping the prospects for continuing the rally wide open. As long as the price can remain above key support levels, the potential for gold to test higher resistance levels increases, with the buyer momentum expected to be dominant in the upcoming intraday movements.
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The current gold price is still moving within a bullish channel with a consistent zigzag pattern forming an upward trend. Meanwhile, the moving average (MA) is starting to flatten, signaling a potential shift towards bullish momentum. This technical condition strengthens the prospect of a price increase, suggesting that gold is poised to extend its rally and test significant resistance around the $3,842 level.
Technical Reference: buy while above 3,778
Potential Take Profit 1: 3,831
Potential Take Profit 2: 3,842
Potential Stop Loss 1: 3,788
Potential Stop Loss 2: 3,778
