Green gap, consolidations and gold bulls’ targets.
In today’s gold price forecast, I decided to share with you my insights from today’s Quick Gold Alert. Have a nice read!
Technical Picture of Gold
The first thing that catches the eye on the daily chart is today’s higher open (Asian trading hours), which formed a green supportive gap ($2,672.40-$2,679.60), which serves as the nearest support at the moment of writing these words.
Thanks to this positive development, gold futures finally moved above the key resistance zone (created by the upper border of the red gap ($2,668-$2,675.80) from Dec.16, 2024, and the 50% Fibonacci retracement), which suggests that further improvement is just around the corner.
Thanks to this price action, the futures also broke above the upper line of the orange consolidation (marked on the 4-hour chart below), suggesting that we’ll likely realize yesterday’s pro-growth scenario.
Additionally, buy signals generated by the daily and 4-hour indicators continue to support the buyers, increasing the likelihood of the bulls’ success.
Connecting the dots, yesterday’s comments and levels to watch remain up to date also today:
(…) So, what is the potential scenario based on this formation?
If the futures successfully climb above the upper border of the orange consolidation ($2,678.31), we’ll likely see a breakout above Friday’s peak, which would be a bullish sign that should trigger further improvement and an increase to around $2,703.60, where the size of the upswing would correspond to the height of the formation (the upper orange rectangle).
If the bulls show such strength it will likely also translate into a realization of the Thursday’s potential bullish scenario.
As a reminder:
(…) If the bulls manage to close today’s session above the upper line of the consolidation, we could see an increase to around $2,707 where the size of the upward move would correspond to the height of the formation. At this point it is worth noting that in this area gold bears have an important ally – the red gap ($2,704.90-$2,709.40) from Dec.13, 2024, which serves as a quite solid resistance.
Summing up, thanks to a higher open and green supportive gap, gold futures finally moved above the key resistance zone, which opened the way to the barrier of $2,700 and the realization of the pro-growth scenarios from the previous days (especially when we factor in the buy signals generated by the daily and 4-hour indicators).
Have a profitable day and see you tomorrow.
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Anna Radomska