Gold - Expecting fresh sellers
|Gold, in its 2-hour chart, shows the advance of a five-wave sequence corresponding to a wave (c) of Minuette degree labeled in blue.
On the chart, we observe its fifth internal wave labeled in green in progress, in which the price action may reach a new high, which could be in the range between $1,640 and $1,670 per ounce.
The ascending channel observed in the fifth wave, lead us to conclude that a thrust over the upper-line of the channel would imply the end of the short-term upward cycle.
A short position will activate if the price rises over the upper line of the ascending channel and closes below $1,644.32 per ounce. In our conservative scenario, we anticipate a decline to $1,596.37 per ounce.
If the price action reinforces its bearish momentum, Gold could drop till $1,558.15, and even drop until $1,512.40 per ounce.
The level that invalidates our bearish scenario locates at $1,686.60. Finally, considering that the third wave is extended, if the price starts dropping before the previous high, is it possible that the price turns negative below the $1,640 zone.
Trading Plan Summary
-
Entry Level: $1,644,32
-
Protective Stop: $1,686.60
-
1st Profit Target: $1,596.37
-
2nd Profit Target: $1,558.15
-
3rd Profit Target: $1,512.40
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.