Gold – Chart
Gold Spot at $4,011 is currently retesting the pivot zone on the 4H time frame, hinting at a potential stabilization after a strong downtrend. After peaking at $4,357, the market fell sharply, with mixed candlesticks currently checking the blue pivot area around $4,045. The bearish continuation candles took price down past the pivot zone, however rejection wicks from the $3,961 swing low could be marking a short-term base that buyers may be attempting to form.
The RSI is currently near the 40 level, which is not indicative of strong momentum, but is beginning to show signs of stabilization after the recent selloff. The current pivot zone can be found at $4,023 to $4,045, which can now be expected to act as resistance. With the pivot zone below price, the 50 moving average near $4,160 acts as another barrier.
The trend remains bearish below $4,045 within the overall downtrend, but the recent base that is currently forming could be the setup that will support the market for another push higher. If bulls are able to push through the pivot zone, it is likely to be a good entry zone for traders.
Trade Idea: Buy above $4,045, targeting $4,122, with a stop-loss at $3,961.
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