Gold has dropped through $1761 lows just shy of initial support around $1758 mark. The yellow metal is now seen to be bouncing back toward $1780, which is initial resistance. A break higher will confirm a meaningful bottom in place just ahead of critical support.
Gold might have completed its corrective decline that had begun from $1877 mark on November 16. If the above structure is correct, the yellow metal will be looking to stage an impressive rally toward $1900 from here.
Gold is carving a larger degree corrective wave (a)-(b)-(c) since $1677 lows. The rally between $1677 and $1834 was an impulse labelled as Wave (a) on the 4H chart here. The subsequent drop towards $1721 was a corrective zigzag pattern marked as Wave (b).
Since then, the yellow metal has been carving Wave (c) potentially towards $1928-30 mark. Looking at the sub-waves, Gold might have terminated Waves 1 and 2 around $1877 and $1761 levels respectively. If the above holds well, bulls will be inclined to resume Wave 3 rally soon.
Traders might be inclined to initiate fresh long positions around current levels ($1775), with risk just below $1758 and potential target above $1900 levels.
Prepared by
The Profinacademy.com Team
Related Articles
Bitcoin carves potential bottom around $46000
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.
US dollar index is bearish against 97.00
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD remains bullish against 1.1186
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.
