Gold had been choppy lately. Is has been stuck in a range bound market without clearing a far-fetched market direction.

Currently, we foresee a buy from the support level and anticipate the continuation up. For this, we will analyze the H4 chart.

- Market structure: Gold has been range bound in a bullish market structure. It’s hovering between two price ranges of 1790- 1815. Until any of this level is breached, the direction is not validated. Potentially, we have a support at the 1792- 1795 price region. This support is caused by the HL bullish structure. That being said, this support has also been tested 4 times previously, weakening its strength to push market up.

- Trendline: There is a descending pennant pattern in the formation. With this, we wait for the either trendline break. We anticipate the descending trendline being compromise in this current scenario of Gold. After that, the things get clear and we can take a long position.

- Retracement: The retracement level of 75- 78.6% rests at the 1797 price levels. It does not completely overlap the support area, as it’s a few price levels higher. Nevertheless, this area is equally solid and we wait for the market tapping at the support level before taking any decision.

- EMA's: Both EMA 50 and 200 illustrate a downward trend. The death cross on the buy side was a near miss for the EMA’s. Although both EMA’s reflect a bearish bias, we anticipate of the bullish flip on them as the market starts to move up.

- RSI/CCI: RSI and CCI, both are in bearish levels. An added factor to these levels is the trendline breakout buy that has occurred on the RSI. After the breakout buy, RSI is retesting the trendline. On the other hand, CCI has an ascending trendline, which is being tested. From this test, the oscillator can turn in the bullish region.

There are no current confirmations on GOLD buys. One thing we can do is to buy only at the support structure with one confirmation, which can be a low probability trade. Other than this, its just a waiting game on Gold.

Gold potential bullish continuation

Jul 26 2021

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