4H looks healthy

gold rejected the 1220 resistance forming a shooting star, however, the RSI is not overbought and present a strong bullish divergence. this to me means there may be a pull back to 1208-1210 which is the old resistance turned into support. it bounced off the BB bottom which is an expected reaction. the green candle that a surge from the last price action, suggest that bulls are now in control of the market, we have seen a similar action back in july when the price surged of 20 dollars in 4 days to then drop down, however, in my opinion, this time the conditions are more favourable, with a strong bullish divergence and oversold market conditions. also, the green candle forms a bullish engulfing (even if the shape is not ideal i still considered it valid). i believe there will be a pullback at 1210 to then take over the resistance at 1220.
chart for educational purpose

Zlecenie aktywne:

Bullish engulfing pattern formed, on line with my forecast. After a pull back to 1208. Possible head n shoulder pattern, need confirmation at the break out of the neck line. 1 target 1220, 2 target 1234, 3 target 1240.