Gold is progressing toward $1835 mark

Technical Analysis:

Gold is probably unfolding lower degree wave iii within Wave (c) towards $1853 at least. The yellow metal had dropped through $1782 mark on Tuesday and found support around interim trend line. Bulls are looking poised to remain in control, going forward.

Gold had earlier rallied between $1677 and $1834 levels, subdividing into five waves marked as Wave (a) on the 4H chart here. Ideally, an impulse wave should be followed by a corrective wave in the opposite direction.

The yellow metal had dropped between $1834 and $1721 levels in a corrective zigzag pattern, marked as Wave (b) here. Since then Wave (c) is progressing higher and should terminate above $1834 level at least, if not higher.

Looking at the lower degree wave counts within Wave (c), Gold is either carving an impulse or ending diagonal pattern. The yellow metal is progressing in wave iii towards $1820-30 levels going forward or the diagonal wave iii is progressing higher.

Either way, Gold is expected to remain in control of bulls until prices stay above $1760 and broadly above $1721 support. Traders might be preparing to initiate fresh positions around $1780-90 zone, with risk below $1721 and potential target toward $1865, going forward.

Prepared by

Finacademy Technical Team