Richard Tataru
XGlobal Markets
GOLD has been sold very aggressively recently and technically speaking is it showing signs for a very possible Trend Reversal.
GOLD – Wave Analysis:
At this stage it seems like the Corrective Structure developed as an Expanded Flat in Primary Wave B (green) and as per the current Wave Count, it seems like the Correction is complete.
This would lead a Wave Trader to think that it might just be time for the Bullish Primary C (green) to start developing its Sub-Waves.
As per the previously posted Long-Term Analysis, this might just be the point where GOLD could climb its way up towards a Bullish Structure.
GOLD – Daily Chart:
Trend Reversal – Technical Factors:
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Bullish Divergence is joining on the volumes which is a good sign that the Bulls might be preparing for a Rally.
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Inverted Head & Shoulders Structure can be spotted which could also lead towards a Bullish Impulse.
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Price Action is developing a possible Expanding Channel and a Support could be gained around the 1220.00 pivot.
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Mining Sectors (GDX) appear to finalize their Corrective Structures.
GOLD – 2H Chart:
Fibonacci Projections:
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Minuette (i) (black) reached the previous Vibration Levels and the 1220.00 PivotMinuette (ii) (black) retraced aggressively (typical Zig-Zag Structure) towards 50% Fibonacci Retracements of Minuette (i) (black).
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Minuette (iii) (black) could develop a Rally towards 1236.00 and/or 1248.00 Levels, which are also the 100% and 161.8% Fibonacci Extensions of Minuettes (i) & (ii) (black).
GOLD – Bullish Scenario:
Levels in Focus – 1216.60 and 1220.00 Range
Invalidation – 1207.00
Targets – 1236.00 & 1248.00
Safety Measures:
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When in the green, moving SL to break-even or in profit.
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If Conservative, waiting for Bullish Impulse confirmation and looking for a Flag Formation.
Many pips ahead!
RT
The analysis published by XGLOBAL Markets or its representatives should not be considered as solicitation to trade. Any views, opinions or findings are simple market commentary and only for information purposes. Information in our published content should definitely not be taken as investment advice. XGLOBAL Markets or its representatives shall not be held accountable for any incorrect trading decisions or money lost by individuals that decide to follow our market commentary.
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