Gold Forecast - Gold Shows an Incomplete Sequence
|The golden metal in the 2-hour chart illustrates the potential rally, which Gold could begin in the coming sessions. The reasons for our bullish scenario are as follows:
Fundamental traders are skeptic about the agreement between the U.S. and China.
The yellow metal could be the safe heaven facing the risks of a global deceleration.
Institutional activity published on the latest CFTC report still shows a bullish bias. Big traders hold 85.04% of long positions. The risk of our scenario comes from the increase in short trades of 8.52% (WoW). The positioning in the long-side reported a rise of 2.41% (WoW).
The Elliott wave formation calls for an incomplete bullish corrective sequence. Gold moves inside a wave B labeled in black. This three-waves sequence looks incomplete and should develop a wave ((c)) in red.
The bullish scenario will valid if Gold breaks and closes above $1,497.5. The ascending channel unveils the potential target area, which could be near to the $1,540 per ounce. The invalidation level is at $1,474.19.
If the bullish scenario is invalidated, in the mid-term, Gold could visit the $1,453 level.
Trading plan summary
Entry Level: $1,495.5
Protective Stop: $1,474.1
1st Profit Target: $1,514.5
2nd Profit Target: $1,527.5
3rd Profit Target: $1,543.1
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