Gold seems to have completed a 5 wave decline from $1916 high registered on June 01, 2021 through $1677 lows over the last week. The yellow metal has pulled back through $1756 levels since then and might be looking to extend its counter trend rally towards $1820/25 levels.
Gold had extended its lower degree wave v drop through $1677 early this week before bulls managed to pull back strongly. It is expected to face some initial resistance around $1869 levels, which is fibonacci 0.382 retracement of the above drop.
Looking at the larger degree wave structure, Gold might have completed Wave A lower around $1677 and might be underway to carve Wave B towards $820/25 levels. Also note that fibonacci 0.618 retracement of Wave A is seen passing through $1820/25 zone.
If bulls manage to push higher towards $1820/25 levels, probability remains for a bearish reversal ahead and bears might be back in control. The next bearish target is expected towards $1430/40 levels, in the next several weeks.
Traders might be preparing to remain long in the short term expecting a push higher towards $1820/25 before turning lower again.
Prepared by
The Profinacademy.com Team
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