Gold bottom is in place around $1740

Written by Finacademy.io

setembro 22, 2021

Technical Analysis:

Gold seems to have completed it corrective drop around $1740 levels over the last week. The yellow metal has rallied through $1781 levels since then and is looking poised to push further. Bulls might remain poised to target $1810 resistance in the near term.

Gold had earlier dropped between $1916 and $1677 levels, carving an impulse wave. Ideally an impulse is followed by a corrective wave and the metal seems to be underway to produce a-b-c correction towards $1865 levels at least.

Within the corrective phase, which is progressing since $1677 lows, Gold has carved an impulse wave a, followed by a corrective wave b towards $1741 mark. If correct, the yellow metal is set to complete a zigzag a-b-c corrective rally towards $1865 in the next few weeks.

A push through the resistance trend line and subsequently above $1810 will confirm that wave c is underway and that a bottom is in place around $1741. Immediate support is seen around $1737, which is fibonacci 0.618 retracement of the rally between $1677 and $1834 levels respectively.

Traders might be preparing to position themselves on the long side, against $1741 mark, towards $1865 at least, in the next several weeks.

Prepared by

Finacademy Technical Team

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