Gold remains in a bullish structure despite having faced significant corrections in the past. The latest price movements reveal a resistance become support (RBS) pattern, indicating that buying pressure is still predominant and the upward trend is intact. This pattern demonstrates that an area which previously acted as a ceiling has now transformed into a solid floor for prices, thereby enhancing the potential for the bullish trend to continue. The ZigZag indicator has also established a new support level, reinforcing the idea that the market is maintaining upward momentum in the short term.
Additionally, the CCI indicator bouncing off the oversold area provides an early signal that selling pressure is beginning to weaken and buyers are regaining control. This CCI rebound often acts as an early catalyst for further increases, especially when it aligns with technical structures leaning bullish on the 1-hour time frame. With the combination of the RBS pattern, ZigZag support, and confirmation from CCI, the opportunity for Gold to rise remains available as long as prices hold above the new support level.
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Gold has the potential to form a double bottom on the 15-minute time frame after bouncing from the low area of the Bollinger Bands. This rebound is supported by the ZigZag indicator marking a new low and the CCI beginning to rise from the oversold territory, indicating that bearish pressure is starting to ease. With this combination of technical signals, Gold stands a chance to continue its rise, targeting the resistance level of $4,125.
Technical Reference: buy as long as it remains above 4,030
Potential Take Profit 1: 4,104
Potential Take Profit 2: 4,125
Potential Stop Loss 1: 4,050
Potential Stop Loss 2: 4,030
