The Gold market has sustained its bullish stance with a break of structure above the swing high of 2450. The Stochastic indicator signaled an exhaustion of buyers at this level, leading to a healthy retracement into a bullish order block at 2425.0.
The Gold market has witnessed three consecutive days of price decline. Despite this, the market structure of an upward trend remains intact. The presence of the price above the Moving Average (period 21) indicates that the decline is still a retracement. This decline should not be misinterpreted as a shift to a bearish trend but rather as a normal pullback in a prevailing bullish market.
The overbought signal from the Stochastic has resulted in a retracement rather than a trend change. This suggests that the recent pullback is a temporary correction, allowing the market to regain momentum before potentially continuing its upward trajectory.
Gold Short-term Trend: Bearish
The 4-hour candles have sunk below the Moving Average cross (periods 9 and 21) on the 4-hour chart. The lower timeframe is currently bearish, as the retracement on the higher timeframe has resulted in a structure shift on the 4-hour chart. It is crucial to patiently wait for a bullish reversal on the lower timeframe to establish long forex signals or to wait for a complete bearish shift on the higher timeframe to establish short setups.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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