Gold is progressing in Wave (c) towards $1865

Technical Analysis:

Gold might be underway towards $1865 in the next few weeks as it completes its first impulse wave between $1721 and $1770 early this week. The lower degree wave I might be complete around $1770 or could push through $1775 to terminate.

Gold price might retrace lower towards $1740-45 zone in the near term (intraday) as potential lower degree wave ii termination. Bulls are expected to be back in control thereafter to push higher towards $1865 as waves iii, iv and v unfold to terminate Wave (c).

Gold is most likely to produce a corrective rally (a)-(b)-(c), which had begun since $1677 lows earlier. Please also note that waves (a) and (b) are in place around $1843 and $1721 levels respectively. If the above is correct, wave (c) is underway against $1721.

Also note that wave (b) had dropped to fibonacci 0.618 retracement of wave (b), a common relationship according to the Elliott Wave Principle. Overall, bulls are expected to remain in control till $1721 stays intact.

Traders might want to initiate fresh long positions around $1740-45 zone with risk just below $1721 and potential target above $1865 going forward.

Prepared by

Finacademy Technical Team