Bottom line:  Gold bearish structure remains intact until prices stay below the $1703.00 resistance. Bears are expected to regain control as a lower high might be in place at $1644/45

Technical Analysis:

Gold might be inclined to resume lower after having carved a lower high at $1644/45 levels last week. It could act as a potential resistance as the yellow metal progresses lower towards $1300, in the next several trading sessions. Gold might push higher from here but remains bearish until $1703 resistance is intact.

After rallying for over 10 months since May 2019, Gold might have finally carved a major top at $1703 and should be looking to print lower lows and lower highs, going forward. Also note that the multiyear counter trend rally that had begun from $1046 levels in December 2015 might be complete at $1703. If the above structure holds, the trend should turn lower from here and drag prices towards $1300 levels as initial target.

Furthermore, the recent drop between $1703 and $1450 has been retraced just above the fibonacci 0.618 levels. Gold is expected to face resistance around the $1620/25 zone and reverse lower as potential Wave 3 resumes. Please note that interim support is seen at $1450 while potential resistance stays at $1640/45 respectively.

Most traders might be willing to initiate fresh short positions around current price ($1615/25) with protective stop above $1703 and projected targets below $1300 levels respectively. A break below $1450 would accelerate downside as bears regain full control there. Even a drop below $1540 would be seen as constructive for bears as support trend line breaks.

Alternately, if Gold breaks above the $1644/45 mark, it could test up to $1649 levels, which is fibonacci 0.786 retracement of the earlier drop as discussed above. Either way, a bearish reversal is due until prices stay below $1703.00.

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。