Gold Forecast - Gold Shows an Incomplete Sequence

EagleFX Team EagleFX

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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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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