Gold has rallied through $1815-16 levels after carving a potential bottom around $1798 mark on Tuesday. The yellow metal could still drop through $1780-85 zone before resuming higher again. Please note that $1785 is the fibonacci 0.618 retracement of the entire rally between $1753 and $1831 levels respectively.
Gold has found interim support around the fibonacci 0.382 retracement, which is seen at $1802 mark. If bears are back in control from here, prices might drop through $1785 mark before resuming its rally. Only a break below $1780 consistently could change the direction over the short term.
Gold wave counts remain bullish against $1753 for now and potential upside targets are pointing towards $1850 and $1920-30 levels going further. Immediate resistance is seen around $1831, while interim support is at $1753 levels respectively.
The larger degree wave structure in Gold might indicate a w-x-y combination as labelled on the 4H chart. If correct, prices would stay above $1753 mark and continue pushing higher through $1850 and $1920 levels in the next few weeks.
Traders might be preparing to initiate fresh long positions around $1785-1800 zone with risk below $1750 level. A push above $1831 will further accelerate to $1850 and higher.
Prepared by
The Profinacademy.com Team
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