Welcome to this analysis about Gold and the 4-hour timeframe perspectives. As mentioned already in recent analysis Gold has meaningful resistance zones within the structure in which it already pulled back severely in the past and now did so again. Although Gold has a major support base on the higher global timeframe perspectives such as with the perspective it is building a massive high-base-formation the scenario should not be underestimated here as there is still supply within the market combined with the resistance in the structure it is necessary to do not keep these assessments from the desk. Therefore I detected all the important levels and upcoming determinations we should consider with Gold .
As when looking at my chart we can watch there how Gold now a second time tested the 1830 level and a second time got rejected this time with a swifter and stronger move to the downside. Now Gold is about to approach the 65-EMA in the structure which is a crucial reference level because Gold is likely to increase bearishness further when moving below this . Taking this into a broader context Gold is developing here a potential double-top-formation in the structure with the first top as well as the second top already completed. Such a formation on many occasions is a reversal formation that indicates further continuations to the downside once completed. Especially when such a formation completes this can lead to highly increased downside pressure.
Taking all these factors into the consideration now as Gold approaches the 65-EMA level in that it has also local support at the 1810 zone this is likely to lead to an initial bounce in the local structure as it is marked in my chart however there is a greater likelihood given that this bounce does not sustain and that Gold reverses in the local structure to continue downward. When this happens and Gold increases bearishness especially when bouncing below the neckline this will complete the whole formation and will activate downside targets within the 1760 level marked in my chart in black. Once these zones are reached it has to be elevated how Gold approaches these and if there comes an initial stabilization which is not unlikely or Gold set up to continue further bearishly, it will be an important and interesting development ahead.
In this manner, thank you for watching my update-analysis about GOLD and the potential double-top-formation completing within the next times, great when you support it with a like and follow or comment for more market insight!
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