Hi Traders! Today I share with you my Gold technical analysis and short term forecast post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on Gold in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
Gold D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, ADX Indicator
On the daily chart, we have a key support zone that has formed based on the 161.8%(1712.24) Fibonacci expansion level of the first wave and the 61.8%(1608.99) Fibonacci expansion level of the second wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 1680.83 and the second low that has formed at 1614.82 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. We may now move down to lower timeframe and look for evidences supporting this short term bullish view.
Gold H4(4 Hours) Chart Analysis – Bullish Divergence, Higher Highs, ADX Indicator
On the H4 chart, the price which was moving lower created a bullish divergence which has formed between the first low at 1654.12 and the second low at 1614.82 based on the MACD indicator. The price then moved higher and has created higher highs. Also, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. We may consider these as evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Until the key support zone (marked in blue) shown in the image below holds, my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
Gold D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, ADX Indicator
Gold H4(4 Hours) Chart Analysis
- Bullish Divergence, Higher Highs, ADX Indicator
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
