Gold - Expecting fresh sellers

EagleFX Team EagleFX

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

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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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