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.
Prepared by
The Profinacademy.com Team
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