Bottom line:  Gold potential bearish structure could be in place with $1611 top carved last week. A counter trend rally is expected through $1585, the 61% retracement of above drop.

Technical Analysis:

Gold remains in control of bears after printing highs at $1611 last week and drops through $1536 until this moment. The metal seems to have produced an impulse indicating a much deeper drop, going forward. Looking into the short term structure, Gold has completed 5 waves lower between $1611 and $1540 respectively. Since then, it seems to be unfolding as an expanded flat a-b-c higher towards $1584/85. This has been marked as fibonacci 0.618 retracement of the above drop and hence a bearish reversal remains high probability. Trading opportunities (aggressive and conservative) are being offered on both sides described here. Aggressive trade strategy is to remain long with stops below $1530 and potential upside targets through $1585, while a more conservative strategy could be to remain flat for now and look for opportunities to go short at higher levels. If the above count is correct, $1611 resistance will hold and prices are expected to reverse from around $1585 levels. The overall wave structure since December 2015 lows at $1046 also reveals that the counter trend rally (W)-(X)-(Y) could be now complete at $1611. Please note that Wave (Y) had been unfolding since $1262 lows in May 2019. Wave A terminated at $1557, followed by corrective Wave B towards $1440 and finally Wave C thrust towards $1611 terminated Wave (Y). If the above larger picture is correct, Gold is headed much lower in the coming weeks and months. Also note that any high above $1611 would be short lived and should be seen as a great opportunity to initiate fresh short positions. Initial bearish targets should be seen towards $1445 levels if not further.

Prepared by

Harsh Japee, Technical Analyst.

Gold Chart

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。