Gold Analysis- royalfx

Gold Analysis

PRIMEPIPS PRODIGY: FOREX MARKET ANALYSIS WITH RFX

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XAUUSD (Gold) ANALYSIS: first taking a look on the Daily timeframe, when could observe that gold has been moving in an uptrend for the past few weeks,also applying the diagonal trendline, we can see swing highs (higher highs and higher lows) and that's just a rising wedge formation in simple terms. Additionally applying the 14 RSI with level 50, the RSI value is 68 which is greater than 50 and that indicates a Buy trend (when 14 RSI is above 50 on daily time frame suggest an uptrend market, And 14 RSI value below 50,indicates downtrend market). These 3 factors all agreed to the conclusion that Gold is an uptrend market.

Now coming down to a lesser timeframe, 4hrs we could see that Gold has been in a consolidation trend for sometime now.lacking the momentum to push upwards or downwards ( I call this a tog of war between demand and supply).

Note: when a market consolidates in this manner, there is always an opportunity for a big move in the market ( this is mostly influenced by the presence of institutional traders) and the longer the consolidation the greater the move.

So out position of interest on gold will be to follow the trend. But to do we will need to identify potential points of reversals.

On 4hrs timeframe price is likely to touch the red diagonal line towards 1996. Price into the green zone. And that should be the entry zone for a Buy position with stop loss just below the green zone around 1972 price level and 2139.42 price level as possible target.

Remember Patience is KEY.

Last updated: 12/21/2023 14:38

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