Gold had dropped through $1791/93 lows yesterday before pulling back higher through $1808/09 levels. The yellow metal might have completed an expanded flat corrective wave structure and might be ready to resume lower towards $1785 levels from here.
Gold might be unfolding a corrective wave a-b-c since $1834 highs print on July 15, 2021. Within the correction, the yellow metal might have already carved Waves A and B around $1796 and $1824 levels respectively.
Wave C might be unfolding since then and might be terminating close to $1780/85 levels going forward. Also note that the Elliott Channel support comes in around $1785, along with fibonacci 0.618 retracement passing through $1782 levels respectively.
Also note that Gold might be within a counter trend rally since $1750 lows, and could be carving a larger degree A-B-C rally towards $1847/50 levels going forwards. A drop towards $1785 might terminate Wave B, before Wave C rally could resume higher towards $1847 levels.
Traders might want to position themselves on the short side for 1-2 trading or until prices drop towards $1785 mark. A bullish bounce could be expected thereafter, pushing prices towards $1847 levels.
Prepared by
The Profinacademy.com Team
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