The Gold market on the D1 time frame was in a down trend until 31 March. Then a bottom was formed at 1677.71 as bulls saw an opportunity and demand overcame supply. After the bottom at 1677.71, the market moved upwards through the 15 and 34 Simple Moving Averages and the Momentum Oscillator broke the zero baseline into bullish territory. This could have warned technical traders of a possible change in market structure.
A likely critical resistance level was formed when a top was recorded on 8 April at 1758.51. While bears are currently trying to drive the market lower, the precious metal may find support and make a higher bottom at a possible support level near the 15 Simple Moving Average at 1729.24.
If Gold manages to break through the critical resistance level at 1758.51, then three possible price targets can be anticipated from there. Attaching the Fibonacci tool to the top at 1758.51 and dragging it to the possible support level at 1729.24, the following targets can be calculated. The first target can be estimated at 1776.60 (161 %), the second price target may be calculated at 1805.87 (261.8%). The third and final target may be predicted at 1853.23 (423.6%).
If the 1729.24 possible support level is broken, the anticipated price targets are negated and must be re-assessed. As long as bulls maintain a positive sentiment and demand overcomes supply, the Gold market on the Daily time frame will indicated a possible bullish scenario.
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