Gold fell thoroughly from the area we identified earlier at 1802. The fundamentals indicate the inflationary pressure to push the gold up. As technical analysis, we will see how we can asses the bullish move on H4.

The market structure on H4 and above, indicate a bullish sentiment. Once Gold tapped the major support level at 1775, it pounced off from the level. This level if held, might act as a bullish pressure level. Once market makes a double bottom at this level, we will continue moving up after formation of a bullish price action, which has already formed. It should be noted that the market formed its lower high at the support.

If we evaluate with trendlines, we have a bullish flag forming. Gold tapped the support trendline and rejected it. We might continue towards the resistance channel to continue up.

At the support level, we have a confluence of the golden retracement level of 75-78.6%. This retracement falling on the support level gives it an immense importance for the prices to halt.

EMA 50 has been pierced for the breakout sell but EMA 200 is being tested at the support level. With EMA 200 test at the support level, we have 3 confluence points at this level. We anticipate a bounce off from this retest.

With the oscillators, we have hidden bullish divergences on both the RSI and CCI. These hidden divergences aligned with the technical price factors on the chart, give us a decent long setup.

Gold has been at a solid level for the market to move it up. From this level, we might gain 100-200 pips. Once this happens, we will bring our stops to breakeven.

Gold bullish impulse

Oct 31 2021

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