Gold Analysis on H4

1 sept 2022

XAUUSD
GOLD

My own take on Gold.
Opinions are welcome :)

Gold recently dropped rapidly and now has reached an important support.
Personally, I am now bullish on gold. Here's why:

• The previous demand zone broke through its recent resistance and made a new higher high indicating a strong bullish momentum here
  
• Gold has entered and rejected the mentioned demand zone above (H4)
  
• RSI(14) has entered oversold region
  
• AO on H1 formed a higher low while candles formed lower low which is an early symptom of a potential reversal
  
• Fib 161 level which I've marked using a broken demand area aligns well with the demand zone
  
  

From what I see:
If the demand zone is successful, I'd be looking to take profit at the recent supply area around 1720.
If the demand zone is fails, the price has potential to drop further into the Fib 261 area.