Gold on the H4 time frame was in an extended down trend until a lower bottom was reached on 2 December at 1761.97. After the lower bottom, bulls started testing the market and the price broke through the 15 and 34 Simple Moving Averages. The Momentum Oscillator also confirmed the bullish action by piercing through the baseline into bullish terrain. A possible critical resistance level formed when a top was reached on 6 December at 1787.71.
While a tug of war has been going on between the bears and the bulls since 6 December, but a clear support level was established at 1775.74 later in the day during the US session.
If the Gold market manages to break through the critical resistance level at 1787.71, then three possible price targets can be considered from there. Attaching the Fibonacci tool to the higher top at 1787.71 and dragging it to the bottom of the support level at 1775.74, the following targets can be calculated. The first target is estimated at 1795.11 (161.8%). The second price target can be forecast at 1807.08 (261.8%) and the third and final target might be anticipated at 1826.44 (423.6%).
Gold H4 Timeframe
If the support level at 1775.74 is broken, the above scenario is no longer valid. If the bulls continue to dominate and demand overcomes supply, the outlook for the Gold on the H4 time frame will remain bullish.
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