Here is the market outlook on Gold (XAUUSD) for the week of 6th to 10th October. This provides a clear projection of the most likely price movements for Gold in the upcoming week.
ANALYSIS.
Monthly timeframe: The price is trending clearly upward, with the previous month showing strong bullish momentum. The current monthly candlestick continues this bullish push, but there are still 26 days left before it closes, so the final candlestick formation is yet to be confirmed.
Weekly timeframe: The price has maintained bullish momentum for seven consecutive weeks. It is bouncing off a dynamic support level, which is more apparent on the daily timeframe. The price is approaching a dynamic resistance where a reversal is likely to occur.
Daily timeframe: The market shows a clear channel movement. After two days of sideways action, Friday’s candlestick opened a new bullish phase that is expected to continue into the coming week. Elliott wave analysis suggests a possible rise completing the fifth wave to the upside.
Four-hour timeframe: The market structure clearly shows an upward trend expected to continue with a new higher high, forming the fifth wave of Elliott wave. A triple top pattern has formed, so the bullish projection will be valid only if the price breaks above the triple top level.
PRIMARY PROJECTION.
Consider buying Gold if the market opens to the upside followed by a break and close above 3900 level, targeting 3990, with the possibility of reaching 4000.
ALTERNATIVE PROJECTION.
Consider selling Gold if the price fails to break above 3900 and instead breaks below the dynamic support levels identified on the four-hour timeframe. The target for selling opportunities would be around 3730.
