Gold might have completed a corrective flat just below $1800

Written by Financial Educator

August 6, 2021

Gold has dropped below $1800 marginally during early hours of trade today. It is in-line with expectations as the yellow metal prepares to terminate wave b as a standard or running flat. We can expect Gold to bottom close to $1785/90 zone today before resuming higher again.

Gold had earlier dropped from $1916 through $1750 levels sub dividing into 5 waves, marking an impulse Wave 1 on the chart here. Since then a corrective a-b-c rally has been unfolding potentially towards $1850/60 levels.

Also note that $1850/60 zone is the fibonacci 0.618 retracement of the earlier drop between $1916 and $1750 respectively. A bearish bounce could be expected if prices manage to reach there and resume lower towards $1650 levels, going forward.

Looking into the corrective rally, Gold might have already terminated lower degree wave a, around $1834 levels. Wave b could either terminate around $1790 or $1784, before finding support and turning higher again.

With the NFP to be out today, it would be interesting to see where Gold finds support, before turning bullish again. Traders might prepare to initiate fresh long positions between $1780/90 levels, going forward.

Prepared by

The Profinacademy.com Team

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