Elliott Wave analysis: Gold is targeting $1800
|After the release of the CPI numbers yesterday, Gold managed to quickly break through the $1,770-$1,780 resistance area in the North American Session, rallying from the September low of $1,721 which has risen close to $80. Is the current Gold rally over?
Technical analysis
As per Elliott Corrective Wave analysis, the rally from $1,721 to $1,781 completed wave A, and currently, wave C looks unfinished, so we may see Gold continue to rise to the $1805-$1810 area, which is also a strong daily price resistance level.
Alternatively, since the RSI indicator is currently above 70 in the overbought area, traders should be careful that the price may fall back at any time and should focus on the $1776-1785 support below (yellow highlighted area). If sellers try to push the price down, then this area may try to stop the price from continuing to fall.
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