GOLD EDUCATIONAL ANALYSIS 23HR - 30 MINUTE TIMEFRAME UPDATE
Please find the educational analysis for GOLD attached above which was posted on the 07th December 2024.
BELOW IS THE PREVIOUS ANALYSIS FOR GOLD 23HOUR TIMEFRAME POSTED ON THE 07/12/2024.
BELOW IS THE UPDATED ANALYSIS FOR GOLD (XAU/USD) 23HOUR TIMEFRAME 12/12/2024
Recently, we observed a significant price reaction in Gold at the $2601.00 level, where both an order block and a breaker block were situated. This key level acted as strong support, and the price has since reacted bullishly, bouncing sharply to the upside.
This reaction indicates a potential shift in momentum, with the market now displaying signs of further upward movement. As Gold continues to push higher, there’s a high probability of reaching a new all-time high (ATH), especially as there is liquidity waiting to be swept above the $2721.00 price level. This liquidity can serve as a magnet for price, driving the market to test or exceed previous highs.
With this bullish momentum, traders should remain alert for any further signs of continuation, such as higher highs and higher lows, or any pullbacks that could offer potential entry opportunities. Watching the $2721.00 level will be crucial, as it could act as a key target in the near future.
As always, it’s important to monitor broader market conditions, such as inflation, interest rates, and global economic factors, as these can have a significant impact on Gold’s price action.
BELOW IS THE PREVIOUS ANALYSIS FOR GOLD 4HOUR TIMEFRAME POSTED ON THE 07/12/2024.
BELOW IS THE UPDATED ANALYSIS FOR GOLD (XAU/USD) 4 HOUR TIMEFRAME 12/12/2024
As we previously discussed, Gold has been trading within a defined range, bounded by a breaker block area at the 2601–2618 price level and an order block area between 2663–2678. During this time, the market remained relatively contained, with price fluctuating between these two zones.
However, Gold has now broken through this range, signaling a shift in market sentiment. On the 1-hour timeframe (and lower), we are witnessing a series of higher highs and higher lows, a classic sign of a bullish trend. This price action indicates a strong upward movement, with the market in a bullish run.
This breakout raises the potential for a new all-time high (ATH) in Gold, as the momentum continues to build. If the price maintains its current trajectory, traders will be watching closely for any further confirmation that this bullish trend has legs, especially in terms of continuation patterns or pullbacks to key support zones.
In the coming days and weeks, traders should monitor key price levels for potential entries, and be mindful of any retracements that may offer opportunities to enter long positions. Additionally, keep an eye on the broader economic factors that could influence Gold’s price action, such as inflation, interest rates, and geopolitical events.
BELOW IS THE PREVIOUS ANALYSIS FOR GOLD 1 HOUR TIMEFRAME POSTED ON THE 07/12/2024.
BELOW IS THE UPDATED ANALYSIS FOR GOLD (XAU/USD) 1 HOUR TIMEFRAME 12/12/2024
As we zoom in on the 1-hour timeframe, the bullish run in Gold becomes even clearer. The market is currently in a strong uptrend, with consistent higher highs (HH) and higher lows (HL), which are classic signs of bullish momentum.
PLEASE TAKE NOTE:
The Asian session is often a time for market corrections or reversals. If Gold has been in a strong bullish or bearish trend in the prior sessions, traders may use the quieter Asian hours to "correct" the price, setting up potential moves for the upcoming London or New York sessions. In this way, Gold may create temporary lows as part of a larger retracement or pullback before a reversal or continuation of the trend.
If Gold has been trending upwards in the previous sessions, traders in Asia may take advantage of any overextended moves by selling off positions or taking profits, causing temporary dips or new lows.
What Does This Mean for Traders?
Entry Opportunities: If Gold pulls back slightly and forms higher lows during the Asian session, it could present a favorable opportunity to enter long positions, especially if the price respects these higher levels.
Trend Confirmation: The continuous formation of higher lows during this quieter session supports the idea that the overall bullish trend is intact. Traders should watch for any retracements to key levels, as these may offer low-risk entries for the continuation of the trend.
Key Price Levels: Keep an eye on the Asian session lows as they can serve as support for the bullish trend. If Gold holds above these levels and forms higher lows, it could signal a continuation of the bullish trend as the market moves into the more liquid London and New York sessions.