Gold

After the weekly close, a weekly candle called a hammer has formed.

What does it mean?
This candle indicates:
A struggle between sellers and buyers:
The price initially dropped sharply (long lower wick)
Then buyers entered and pushed the price higher before the close.
This means that sellers were in control at first,
but buyers refused to let the price fall further.

It is an initial signal of a reversal, but it should not be relied on alone. Confirmation is needed from:
The next candle being strong and green,
or a breakout above the current candle's high at 4600.

Note that the price reached the 50-week moving average and bounced strongly from it, with buyers appearing around the 4000-4100 level.

Looking back to the strong gold rally in the 1970s, I found the same pattern (second image): strong selling at the top followed by reaching the 50-week moving average, buyers appearing, and forming a hammer candle. What happened next? New highs.

Summary: Next week will confirm whether the trend reverses or not.
Confirmation requires a break above 4600 and a weekly close above it.

Good luck to everyone.

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