Gold Preparing for a Bearish Move
|In its hourly chart, Gold shows an upward movement that drives the precious metal until the zone of $1,670 per ounce. However, the Elliott wave perspective makes us expect a new decline.
The yellow metal currently moves in a potential flat pattern, that follows an internal sequence as 3-3-5. Until now, the price action has advanced in the second segment identified as a wave (b) of Minuette degree labeled in blue, this corrective movement is confirmed by RSI oscillator that moves near to level 60.
The completion of the current upward segment should give way to a new bearish movement that could drive to Gold toward new lows.
A sell-side position will active if price drops and closes below $1,656.73 per ounce. In our conservative scenario, the potential target is locates at $1,637.84. If the precious metal increases its bearish momentum, the price could fall to $1,610.31, and even to plummet until $1,584.41 per ounce.
The level that invalidates our bearish scenario is placed at $1,684.25 per ounce.
Trading Plan Summary
Entry Level: $1,656.73.
Protective Stop: $1,684.25.
1st Profit Target: $1,637.84.
2nd Profit Target: $1,610.31.
3rd Profit Target: $1,584.41.
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