GOLD Timeframe Daily: Based on the daily price movement of GOLD, the current market conditions indicate a significant recovery after experiencing strong bearish pressure since its peak above 5,100. The price gradually declined, forming a structure of lower highs and lower lows, eventually reaching the support area around 4,066 and even approaching the 3,940 zone. After reaching this area, selling pressure began to weaken, and GOLD entered a consolidation phase before experiencing a fairly aggressive rally in early August. Recent price movements have shown the price rebounding to around 4,489, indicating technically that bullish momentum is developing, although the price still faces several key resistance areas. In terms of moving averages, the use of the 100-day moving average (MA) and 200-day moving average (MA) provides a clear picture of the changing market momentum. The 100-day moving average (MA), shown as the blue line, was previously above the price movement and served as dynamic resistance during the downturn. When GOLD remains below the 100-day moving average (MA), bearish pressure appears more dominant, as any upward movement tends to encounter resistance around this moving average. However, in the latest movement, the price managed to break through and move above the 100-day moving average (MA). This is a positive signal because it indicates that buying pressure is starting to offset or even overcome previous selling pressure. Meanwhile, the 200-day moving average (MA), indicated by the red line, is relatively flat, around 4,390 to 4,400. The price currently moving above the 200-day moving average (MA), further confirms that the recovery has a strong technical basis. Interestingly, the 100-day and 200-day moving averages (MA) appear to be converging. This indicates that the market is in a transition phase. If the price is able to stay above both moving averages and the 100-day moving average (MA) begins to move consistently upward, the bullish structure has the potential to strengthen in the medium term. Conversely, if the price falls back below these two lines, the current increase can be considered merely a retracement within the larger trend. In terms of horizontal resistance, the first area to watch is around 4,489 to 4,494. This level is the closest resistance level that the price is testing in the recent movement. After rising from the 4,200 area, GOLD moved up quite strongly, reaching that zone. The position of the latest candlestick, which is near resistance, indicates that the market is determining its next direction. If the price can break through and close validly above the 4,494 area, the opportunity for further upside will increase.
The next resistance level is located around 4,595. This level is quite important because it previously served as a price movement zone during the consolidation phase from late April to May. This area has the potential to become the next target if a breakout above 4,494 is confirmed. A rise towards 4,595 would indicate that the price recovery is not merely short-term but is beginning to form a broader bullish structure. After that, the next major resistance level is located in the 4,659 to 4,660 area. This level was previously a key zone that was repeatedly tested by the price and has the potential to re-emerge selling pressure. If bullish momentum strengthens and GOLD is able to break through the 4,660 resistance level, the next upside target could be the 4,773 area. This level is quite significant resistance because it was previously one of the highest points in the price structure before a larger decline occurred. Therefore, the 4,773 area could be a medium-term bullish target and an area to watch out for due to the possibility of profit-taking. In terms of horizontal support, the 4,449 to 4,450 area is the closest important support. This area previously served as a resistance zone, so once it's broken through, it could transform into a new support zone. As long as GOLD maintains its price above this area, the opportunity for further upside remains open. If a pullback occurs, a price response around 4,450 will be a key indicator of whether buyers remain in control. The next support level is located around 4,267. This level is crucial because it's close to the 100- and 200-day moving averages. The confluence of horizontal support and moving averages can create a strong confluence zone. If the price corrects to this area but manages to hold and form a bullish reaction, this could strengthen the chances of a continuation of the uptrend. However, a strong break below 4,267 could increase the risk of a deeper correction. The next support levels are located at 4,172 and then 4,066. These two levels are important zones that previously served as the basis for consolidation. The 4,066 area in particular plays a key role as support because it was one of the lowest points before the price began its recovery. If GOLD falls further below 4,066, the developing bullish structure will come under significant pressure, increasing the risk of a bearish trend re-establishing. The last support on the chart is seen around 3,940, which can be considered the key lower boundary of the current price structure. GOLD's current movement indicates bullish momentum is gaining ground after the price rebounded from a low support area and broke through the 100- and 200-day moving averages (MAs). However, the price's proximity to the resistance level of 4,494 still warrants close attention. Under these conditions, a breakout of the resistance level must be confirmed by a strong daily candlestick pattern. A valid breakout would provide an opportunity for further upside towards 4,595 and 4,660, while failure to break through resistance could lead to a retest of 4,450 or even 4,267.
