GOLD – Technical Analysis – 4h

The chart initially exhibits a strong bullish trend with higher highs and higher lows, peaking midway through the period. However, there is a shift to a bearish trend with lower highs and lower lows subsequently observed.

A bearish engulfing pattern near the peak signals a reversal to a downtrend. Recently, a potential hammer pattern suggests a possible reversal from the downward movement.

A breakout at around 4460 was followed by a pullback, and the subsequent inability to reach prior highs confirms the bearish momentum.

The MACD line crossing below the Signal line indicates a bearish crossover, supporting the recent declines in price.

The histogram's negative values align with the bearish momentum, but shortening bars indicate decreasing momentum.

No significant divergences are currently observed between MACD and price action; however, the reducing negative histogram might suggest a slowing bearish trend.

A notable volume increase during the sell-off phase reinforces the downward price movement's strength.

The volume spike near the November price peak may indicate institutional profit-taking.

Overall volume trends suggest high market activity, particularly during significant trend changes.

Resistance near 4460 is marked by a previous high, serving as a key resistance level.

Support at around 4320 has been tested multiple times, indicating a strong interest area. A break below this level could signal further declines.

Critical support and resistance levels need monitoring for trend check and entry points.

Consider a buy strategy upon observing a bullish reversal pattern or a MACD bullish crossover before entering long positions.

Selling might be advantageous if the price breaks below the 4320 support with heightened volume.

If holding positions, placing stop-loss orders just below critical support levels or waiting for positive confirmation signals is advised.