Gold remained supported around $1800 mark on Tuesday, bouncing back up to $1813/14 levels intraday. If prices are able to stay above $1800 mark going forward, bulls would be poised to test $1830 resistance next.
The yellow metal had dropped from $1916 to $1677 levels, subdividing into 5 waves. It could be marked as potential Wave A of the next drop lower towards $1450 going forward. If the above is correct, the yellow metal might be unfolding Wave B higher towards $1830/40 from here.
Also note that fibonacci 0.618 retracement of the entire drop is seen around $1830/31 zone as well, which should provide strong resistance, if prices reach there. On the other hand, if $1830/31 remains intact, Gold might reverse sharply lower from current levels.
The metal faces immediate resistance at $1830/31, while support is seen towards $1770/80. A break below $1770/80 will confirm that there is further downside left and bears would be inclined to drag prices below $1734 levels going forward.
Traders might wait for a few days and watch price action confirmation before committing further. A break of $1830 will confirm that Gold is set to move towards $1900 mark going forward and is good to buy on dips thereafter.
Prepared by
The Profinacademy.com Team
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