Gold targets above 1834 in the near term

Written by Financial Educator

October 15, 2021

Gold seems to be progressing well within wave (C) since $1721 lows. The yellow metal is looking poised to terminate above $1834 mark, to complete the above structure. Potential remains for a corrective drop towards $1760-70 before the rally could resume.

Gold had earlier rallied between $1677 and $1834 levels subdividing into five waves carving an impulse. The above rally has been marked as wave (a) on the hart here. Ideally, an impulse is followed by a corrective wave and prices dropped through $1721 in a zigzag.

The termination of wave (a) and (b) is a classic Elliott Wave pattern 5-3, which should be followed by another five wave rally exceeding $1834 mark. If the above is correct, prices should stay above $1721 levels going forward.

Looking into the sub waves since $1721 lows, Gold might have carves lower degree waves I and ii around $1775 and $1750 respectively. Further, wave iii might be in progress towards $1834 levels in the near term.

The corrective drop at the time of writing could find support around $1770-80 zone, before bulls are back in control. Traders might position themselves on the long side against $1721 mark going forward.

Prepared by

The Profinacademy.com Team

Related Articles

Gold holds above $1785 critical support

Gold holds above $1785 critical support

Gold prices have reversed sharply toward $1780 levels in the past few trading sessions losing over 100 points. Bulls have managed to hold prices above a critical support around $1758 mark until now.

US dollar index prepares to turn lower after hitting 96.88

US dollar index prepares to turn lower after hitting 96.88

The US dollar index rallied through 96.88 levels on Wednesday, a bit higher than the expected 96.65 mark. The index has now tested fibonacci 0.50 retracement of the larger degree Wave (1) as labelled on the daily chart here.

EURUSD close to a major bottom formation around 1.1200

EURUSD close to a major bottom formation around 1.1200

EURUSD has carved yet another shallow low on Tuesday around 1.1226 before finding mild bids. The downside remains limited from here and the single currency pair might test 1.1200-10 mark before resuming higher again.

LinkedIn
Share