Our analysis of the 4H Gold chart shows that there is still a chance of an expanding long term trend (uptrend). Despite of that possibility, in the short term it appears that there is a tendency for prices to fall.
A reading of the Stochastic Oscillator marker demonstrates a decent quality among purchase and sell. Stoch-Os is starting to rise again in the lower part of the indicator windows. The same thing is indicated by the RSI indicator. The line is touching the lower level and make a move above. This is also confirmed by the MACD indicator which indicates that the signal is still in neutral condition. Even the histogram is still below the zero level, it is not quite far from the level and remember that the leght of the histogram is shorter from some periods before.
In our conclusion, overall Gold is trending up, and the previous breakout of 1261.80 has been confirmed as this level is now support. Despite a new high point of short-term trend, the return of the ounce of gold on this support sends a possible neutralization of the global trend. However, a bearish break in this support could signal a downward trend.
Gold expected to rise after short fallThis is a kind of tricky situation when thader should always aware. Our advice for trading Gold, traders should be cautious about the limited decline in gold prices. Given the possibility of a trend price increase, we recommend a TP that is not too large. Open buy position when it start to rise near the support level.
Support: $ 1261.80
Next support: $ 1246