Looking at Gold on the 4-hour chart, we see a clear bullish channel formed.
Price has been bouncing off the channel top and bottom since the 6th of January.
I like to see two taps on the bottom and two taps on the top as a minimum to say that this is indeed a channel. We can see clearly that we have two taps on the bottom and two on the top.
I also like to see price respecting the middle line of a channel. Notice how price has been treating the middle of this channel. It’s an area of interest.
We also have a line of resistance that has been flipped to support.
Notice the red and green arrows. This suggests that price has the potential to keep moving upwards.
Currently, the price is hovering around the middle line of the channel.
There is a chance that the price could come down and retest that support line before moving higher. This could provide a decent entry for those looking to long gold.
Either way, momentum continues to look bullish.
If we had Full Divergence across the MacD, I would say that this channel would soon be breaking below the channel bottom to the downside, and we could look for potential shorts. But as we do not see divergence, it’s logical to say that further bullish movement is expected.
This is one to keep monitoring, and I will update accordingly.
Price has been bouncing off the channel top and bottom since the 6th of January.
I like to see two taps on the bottom and two taps on the top as a minimum to say that this is indeed a channel. We can see clearly that we have two taps on the bottom and two on the top.
I also like to see price respecting the middle line of a channel. Notice how price has been treating the middle of this channel. It’s an area of interest.
We also have a line of resistance that has been flipped to support.
Notice the red and green arrows. This suggests that price has the potential to keep moving upwards.
Currently, the price is hovering around the middle line of the channel.
There is a chance that the price could come down and retest that support line before moving higher. This could provide a decent entry for those looking to long gold.
Either way, momentum continues to look bullish.
If we had Full Divergence across the MacD, I would say that this channel would soon be breaking below the channel bottom to the downside, and we could look for potential shorts. But as we do not see divergence, it’s logical to say that further bullish movement is expected.
This is one to keep monitoring, and I will update accordingly.