Hi Traders! Gold forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).
Gold D1(Daily) Chart Analysis – Range Breakout, Parabolic Sar, ADX Indicator, RSI Indicator
On the daily chart we have a range that has formed which started on 6th August 2020. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range so far has broken below the bottom of this range and is currently holding below it. In addition to this based on the Parabolic Sar we could see that the dots are above the price. Also, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25. And we have an uptrend line breakout based on the RSI indicator. We may consider these as evidences of bearish pressure. We may now move down to one timeframe lower and see if we can find evidences supporting this bearish view.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Gold H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Parabolic Sar, ADX Indicator, Strong Resistance Zone
On the H4 chart based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this the dots are above the price here as well based on the Parabolic Sar which we may consider as evidence of bearish pressure. Also, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. In addition to all this we had a strong support zone and the price which was respecting this zone so far has broken below this zone and is holding below it. Currently this strong support zone acts as a strong resistance zone for us. Until this strong resistance zone holds my view remains bearish here and I expect the price to continue lower further.
Technical Analysis And Forecast Summary
Gold D1(Daily) Chart Analysis
- Range Breakout, Parabolic Sar, ADX Indicator, RSI Indicator
Gold H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Parabolic Sar, ADX Indicator, Strong Resistance Zone
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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