Gold might have carved a lower top around $1798 levels on April 22, 2021. The yellow metal had then dropped through $1762 levels yesterday before staging a counter trend rally. A lower top might be in place at $1790 levels today. A drop below $1760 confirms a reversal is underway.
Gold wave structure since $1960 highs is as follows: The yellow metal has been able to carve Waves 1, 2, 3 and potential 4 around $1802, $1875, $1676 and $1798 levels respectively. If correct, the metal might be poised to resume lower from here soon.
Also note that the counter trend Wave 4 has unfolded as a combination w-x-y, a 3-3-3 structure. Furthermore, prices managed to reach up to fibonacci 0.618 retracement of Wave 3, which is close to $1804 levels.
If the above proposed wave structure holds well, Gold might be well on its way below $1675 and towards $1625 mark as Wave 5 begins to unfold. The counter trend line support is being back tested now around $1790 and prices are facing resistance.
The short term wave structure since $1798 is as follows: The drop between $1798 and $1762 had unfolded into 5 waves. It doesn’t look like an impulse, but can be categorized as a leading diagonal. The recent rally is just a counter trend, which should stay below $1798 mark.
Gold might be preparing its next bear leg very soon from around $1790/1800 levels. Immediate short term targets are pointing towards $1740 at least. The above will instil further confidence on the bearish setup.
Finacademy Technical Team
Silver has raised through $27.55 levels this morning, alongside most risk assets. The metal has approached a strong resistance zone now and bears might be inclined to take control back soon. Also note that it has almost reached the fibonacci 0.618 retracement of the entire drop between $30.13 and $23.80 levels respectively.
USDJPY bulls are now looking poised to push through 112.00/50 mark, after have carved yet another higher low around 107.50. Please note it bounced off the trend line support since January 2021 lows as well. Looking higher from here for next few weeks.
Gold had raised through $1799 yesterday before reversing sharply towards $1770 before finding support again. The yellow metal is pulling back at the moment and seems to have carved a meaningful top already yesterday. If correct, $1786 might offer strong support.