Gold – Bullish Impulse – Minuette (iii) – Trend Reversal
|GOLD has been sold very aggressively recently and technically speaking is it showing signs for a very possible Trend Reversal.
GOLD – Wave Analysis:
At this stage it seems like the Corrective Structure developed as an Expanded Flat in Primary Wave B (green) and as per the current Wave Count, it seems like the Correction is complete.
This would lead a Wave Trader to think that it might just be time for the Bullish Primary C (green) to start developing its Sub-Waves.
As per the previously posted Long-Term Analysis, this might just be the point where GOLD could climb its way up towards a Bullish Structure.
GOLD – Daily Chart:
Trend Reversal – Technical Factors:
-
Bullish Divergence is joining on the volumes which is a good sign that the Bulls might be preparing for a Rally.
-
Inverted Head & Shoulders Structure can be spotted which could also lead towards a Bullish Impulse.
-
Price Action is developing a possible Expanding Channel and a Support could be gained around the 1220.00 pivot.
-
Mining Sectors (GDX) appear to finalize their Corrective Structures.
GOLD – 2H Chart:
Fibonacci Projections:
-
Minuette (i) (black) reached the previous Vibration Levels and the 1220.00 PivotMinuette (ii) (black) retraced aggressively (typical Zig-Zag Structure) towards 50% Fibonacci Retracements of Minuette (i) (black).
-
Minuette (iii) (black) could develop a Rally towards 1236.00 and/or 1248.00 Levels, which are also the 100% and 161.8% Fibonacci Extensions of Minuettes (i) & (ii) (black).
GOLD – Bullish Scenario:
Levels in Focus – 1216.60 and 1220.00 Range
Invalidation – 1207.00
Targets – 1236.00 & 1248.00
Safety Measures:
-
When in the green, moving SL to break-even or in profit.
-
If Conservative, waiting for Bullish Impulse confirmation and looking for a Flag Formation.
Many pips ahead!
RT
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.