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 – False Breaks, Bullish Divergences, RSI Indicator, CCI Indicator
On the daily chart, the price has created multiple false breaks with multiple bullish divergences between the first low that has formed on 30th November 2020 and the second low that has formed on 19th February 2021 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, we have a downtrend line breakout based on the RSI indicator. Also, we have a downtrend line breakout based on the CCI indicator as well, we may consider these as other evidences of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Gold H1(1 Hour) Chart Analysis – Strong Support Zone
On the H1 chart, we had a strong bullish move and it looks like a pullback is happening now in the form of double wave down. Also, we had a strong resistance zone that has formed, the price which was moving higher has broken above this strong resistance zone and is holding above it. Currently, this strong resistance zone is acting as a strong support zone for us. The price has currently reached this strong support zone, so until this strong support zone holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
Gold D1(Daily) Chart Analysis
- False Breaks, Bullish Divergence, RSI Indicator, CCI Indicator
Gold H1(1 Hour) Chart Analysis
- Strong Support Zone
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