Gold has rallied through $1798 levels after printing low around $1758-60 mark early this week. Bulls seem to be back in control as they successfully managed to take out initial resistance at $1795. The yellow metal could pullback from here before resuming its rally.
Gold prices are heading towards $1835 and up to $1865 levels in the next few weeks. Bottom line remains $1721 potential support, to keep the above bullish structure intact. Intraday support range is between $1775-80 for the rally to resume.
Looking at the wave counts, Gold prices are progressing with potential Wave (c) towards $1865. A push above $1813 will open the door to test $1835 and further through $1865 levels. Bears are expected to be back in control thereafter.
The metal had earlier rallied between $1677 and $1834, subdividing into five waves carving an impulse Wave (a) on the chart. The subsequent drop toward $1721 was corrective zigzag, marked as Wave (b) on the chart. If correct, Gold is unfolding Wave (c) towards $1735 at least.
Traders might inclined to hold long positions from $1760 levels and also add further around $1775-80 zone with risk below $1720 going forward.
Prepared by
The Profinacademy.com Team
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