FXTM Analysis – Gold H4 – A bear rush in the Gold market

Written on 01/11/2021 by Theunis Kruger, FX Trainer at FXTM

Gold on the H4 time frame was in a ranging market with random top and bottoms until the 28^th of October when a lower top was recorded at 1810.38.

The market then broke through the 15 and 34 Simple Moving Averages to form a lower bottom with the Momentum Oscillator confirming the bear rush in the Gold market by piercing through the baseline into bearish territory.

The lower bottom and critical support level was recorded on the 29^th of October at 1771.98. Currently bulls are trying to take back control of the market but a possible resistance level at 1787.83 seems to be holding them back.

If Gold breaks through the critical support level at 1771.98, then three possible price targets can be projected from there. Attaching the Fibonacci tool to the bottom at 1771.98 and dragging it to the top of a resistance level near the 15 Simple Moving Average at 1787.83, the following targets may be calculated. The first target can be estimated at 1762.18 (161.8%). The second price target might be calculation at 1746.33 (261.8%) and the third and final target can be anticipated at 1720.69 (423.6%).

If the resistance level at 1787.83 is broken, the above scenario is invalidated and must be reviewed.

As long as bears keep rushing into the Gold market, the down trend should continue to gain momentum.

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Nigel Frith

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