GOLD: Break Above The 1302 Mark Would Suggest Higher Price In View
On the Daily chart of Gold, we are observing a nice three wave correction taking place with sub-wave C in final stages as part of a higher degree correction of wave B) or II). If that is the case, then gold will ideally find itself a region of support around the 50 or 61.8 Fibonacci ratio and from there make a turnaround higher.
Break above the 1302 level would suggest that the correction is completed and higher prices may show up.
Regarding the 4h time frame, we can see that Gold broke to the downside at the start of the month, which we assumed would happen as bearish momentum was going up back then. Gold moved strongly down, clearly with an impulsive decline; a five wave structure from 1344 which means that gold can be ready to turn in sessions ahead with minimum three legs up, back to the 1276/1280 area.
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