Gold carves interim bottom around $1725-30

Written by Finacademy.io

setembro 29, 2021

Technical Analysis:

Gold had dropped to $1728 mark on Tuesday before finding support. The yellow metal still remains within fibonacci 0.618 retracement of Wave (a), the rally between $1677 and $1834. Bulls might be poised to come back in control soon.

A break above $1753-54 will confirm that a meaningful bottom is on place and that bulls would push higher through $1865 mark in the coming weeks. Ideally prices should stay above $1710 mark, if the above bullish structure needs to remain intact.

Earlier, Gold had dropped between $1916 and $1677 levels subdividing into five waves. If correct, a three wave corrective rally seems to be underway from $1677 lows. Within the correction, the yellow metal might have terminated Waves (a) and potential (b) around $1843 and $1728 levels respectively.

Gold bulls might be now poised to push higher above $1834 at least, as Wave (c) unfolds. We can expect prices to test $1865 mark, which is the fibonacci 0.786 retracement of the drop between $1916 and $1677 levels respectively.

Alternatively, Gold prices might push higher towards $1916-20 before terminating the above corrective rally. Traders might want to position themselves on the long side against $1710 mark, towards $1865 going forward.

Prepared by

Finacademy Technical Team

Related Articles

US dollar index is bearish against 97.00

US dollar index is bearish against 97.00

The US dollar index might have carved a lower high around 96.50 mark on Tuesday. The index dropped through 95.80 levels on Wednesday before finding some support.

Portuguese