Gold’s 4H chart is currently developing a hidden bullish divergence, which could help the gold price surge towards its Pivot High at $2,721.410, or at least tap the upper trendline of a descending channel.
A hidden bullish divergence often signals a potential continuation of a bullish rally. When downside momentum increases but the price fails to form a lower low, it suggests aggressive selling, which can create ripe conditions for a short squeeze.
Gold Upside Targets
If Gold (XAUUSD) is able to rise from this point, traders should eye these levels:
- Upper Trendline of Descending Channel
- Pivot High at $2,721.410
Then, if Gold is able to break its pivot high convincingly with high volume, the next key resistances are::
- Oct High at $2,789.590
- Key Psychological Milestone at $3,000
Gold Downside Targets
If Gold instead plummets from this point, we need to look at the following key supports:
- Pivot Low at $2,605.085
- Oct Low at $2,601.810
These levels are extremely close to each other, but do not align with the broader descending channel’s lower trendline support. If Gold falls even lower, the next support levels are:
- Nov Low at $2,536.664
- Consolidation Zone from September at $2,473.675 — $2,524.258
- Lower Trendline of Descending Channel
These support levels are crucial for Gold to stay on track toward the $3,000 milestone. A dip to these levels might also trigger a regular bullish divergence, potentially driving a reversal of its short-term downtrend.
You may also be interested in:
