GOLD – Technical Analysis – 4h

There is evidence of a strong bearish move followed by a potential reversal candlestick pattern in the form of a hammer. This suggests a possible bullish reversal, especially considering its position near a previous support level.

The trend appears to be correcting from a recent high, moving from bullish to a more sideways movement with signs of recovery.

There was a clear overextension upwards, followed by a pullback, which now seems to find some stability and might be positioning for another upward move.

The MACD line is below the Signal line, indicating recent bearish momentum, but they are converging, which might suggest a potential bullish crossover soon.

The histogram shows decreasing bearish momentum, indicating that the sell-off might be losing strength.

There is no clear divergence right now between the MACD and price action, but the alignment suggests potential for a trend change should the crossover happen.

Volume spiked during the recent sell-off, suggesting strong participation in the downward move.

Recent lower volumes with price stabilization indicate cautious buying interest returning.

No new unusual spikes in volume currently, which points to less aggressive selling and potential consolidation.

The key support level is located around 4320, where recent price action seems to stabilize.

The nearest resistance is around the 4480 level, where the upward momentum previously faltered.

Breaking above 4400 with volume could signal a robust recovery, while moving below 4320 might hint at renewed bearish pressure.

Consider buying if the price moves above the 4400 mark with increasing volume, confirming a bullish reversal.

Position for a sell if the price drops below the 4320 level with an increase in volume.

If within the range of current support and resistance, holding might be prudent to avoid whipsaw moves.