Gold prepares to turn higher against $1745

Gold had dropped to $1745 on Thursday to complete the corrective wave that had begun from $1834 mark. The structure looks complete with potential wave b termination seen around $1745. If correct, the yellow metal should resume higher against $1745.

Also note that Gold prices have found support at the fibonacci 0.50 retracement of wave a ($1677 to $1834). High probability remains for a bullish reversal here, and a push through $1806 confirms bottom in place.

Gold had earlier dropped between $1916 and $1677, carving an impulse, labelled as potential Wave A on the chart here. Ideally an impulse is followed by a corrective wave in the opposite direction. If correct, the yellow metal is underway to produce corrective wave a-b-c higher toward $1865.

Gold should remain above $1677 mark to keep the bullish structure intact. Also keep an eye on $1737, which is fibonacci 0.618 retracement of the above rally. Probabilities remain for a drop to $1737 before resuming higher.

Traders might want to position themselves on the long side either from current levels ($1758) or around $1737 mark. Risk remains around $1677, while potential targets are above $18965 going forward.

Prepared by

The Profinacademy.com Team