Analysis of Expected Gold Movement with Key Target Levels
Gold is currently moving sideways after its historic rally, which propelled it to record highs near $5597. This led to a sharp, anticipated correction targeting the $4402 level, after which gold entered its current sideways movement.
This article will review the technical outlook for gold's expected movements and the most important entry points through several possible scenarios.
Expected Scenarios
Downward Scenario
We will first discuss the expected downward scenario, which is anticipated in the short and medium term.
Currently, gold is consolidating near the $4880 level, which represents a significant support level. This comes after a rebound from supply zones near $5084, which proved to be a strong resistance level for gold. A break above this level could propel gold upwards.
If the support level at 4880 is broken and the price closes below it on a 4-hour candle, this could push gold down further to the next demand zone near $4716. This level represents a significant and strong buying opportunity that could propel gold upwards and allow it to continue its sideways movement.
Naturally, if the demand zone at 4716 is broken and the price closes below it on a 4-hour candle, this would target the next area near $4463. Although this scenario is not highly likely, it remains a possibility.
Buy Scenario
We have several important and strong entry points in this scenario. The expected buying zones are the initial demand zones near $4716. However, it is preferable to wait for any buying price action on lower timeframes, such as the hourly chart, to confirm the entry. These are among the most important buying zones, and reaching them is expected to push gold upwards and allow it to continue its sideways movement.
Another important buying opportunity arises only if the price breaks through the supply zones, which represent very strong resistance levels for gold and are located near the $5084 level.
If these zones are broken and the price closes above them, a continued upward trend is expected, initially targeting the $5330 level and then the key areas near $5469. This represents the most important and strongest selling zone for gold, and a break and close above it would propel gold to new all-time highs.
The situation in the Middle East, along with the ongoing tensions between the US and Iran, and the US economic outlook, continue to support gold's long-term rise. However, it is crucial to closely monitor gold's movements and manage your capital effectively, as this is the safety net that will protect you from market volatility, no matter how strong or volatile the movements may be.
