FX.co ★ A33x | XAU/USD, GOLD

Gold Chart Review: We will examine the forecast for the movement of the gold prices. Looking at the 4 - hour chart, a false breakout and a bearish price reversal are expected. According to Elliott Wave Theory, the 5th impulse wave is stalled, and as the price recovers from the 4520.07 level, corrective wave "A" has begun to decline. Technical analysis indicates a sell signal. As a result, the SSI indicator line is declining and heading towards - 100 or - 267 within its range. Meanwhile, the OSMA chart has entered negative territory and is in a down - trend. In a favorable scenario, the price will decline and fall below the Fibonacci retracement levels of 23.6 and 38.2 corresponding to the 4520.07 level, respectively.

The bears are strengthening the horizontal resistance level at 4520.07 and testing it in two ways, most likely being the support level at 4520.07. We expect a price correction below the 4520.07 support level on the 4 - hour chart. This scenario is suitable for the continuation of the uptrend. It is best to verify the results with backtesting. At a minimum, the support level should be above 1700 and the moving average should be 65. According to the patterns on the 4 - hour chart, there are no sell signals yet. The price is above the MACD midline, RSI, and Bollinger Bands, and the Stochastic oscillator is also supporting a buy. Buying on dips is a wise move as following the trend is key to getting good results.