August 20, 2021
Gold might be preparing to rally towards $1825/30 levels at least, before deciding on further direction. The rally since $1677 lows might be unfolding into an impulse and a push above $1800 would confirm. It would also mean that Gold rally is still incomplete and could push even higher.
Gold has been producing extremely shallow retracements indicating bullish pressure since bouncing back from $1677 levels. Also note that $1825/30 is fibonacci 0.618 retracement of the drop between $1916 and 1677 levels respectively. Hence probability for a bearish turn remains high if prices manage to reach there.
Gold might have terminated larger degree Wave A around $1677 levels early this week The drop between $1916 and $1677 was in 5 waves, which is labelled as Wave A on the 4H chart. If the above holds well, the yellow metal might produce a corrective wave towards $1830 levels, going further.
Also note that the corrective rally might extend towards $1850/60 levels as well, which is fibonacci 0.786 retracement of Wave A. Either way, potential remains for a push higher at least towards $1825/30 levels from here.
We shall review the situation again when prices reach $1825/30 levels and hit resistance. The trend line resistance would also offer pressure on the downside going further.
The Profinacademy.com Team
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