Gold might have finally completed its wave b corrective drop around $1737 mark on Thursday. The yellow metal has found support around fibonacci 0.618 retracement of the entire rally between $1677 and $1834 mark, wave a on the chart.
Gold prices have bounced back strongly since $1737 lows and is trading around $1752/53 mark at the time of writing. Immediate resistance is now seen around $1776, followed by $1786-87 and a break higher would confirm that bulls are back in control.
Gold had earlier dropped between $1916 and $1677, subdividing into five waves, labelled as Wave A on the 4H chart here. The yellow metal is on its way to carve a corrective rally a-b-c, towards $1865 levels at least, before resuming lower again.
If the above is correct, Gold prices would stay above $1720 and broadly above $1677 mark and push higher through $1865 levels in the next few weeks. Also note that potential remains for a continued rally towards $1920 levels as well, which is an alternate count.
Traders might be willing to initiate fresh long positions around $1752-53 zone, with a risk below $1730 and potential target above $1834 levels at least, going forward.
The Profinacademy.com Team
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.