Gold Price Analysis: Bears seek 5-wave correction to 61.8% Fibo retracement

Gold has popped in the start of the week's Asian session, with risk-off themes fueling the bid.
The price may be completing a 5-wave scenario and could be subject to a bearish correction.
The 61.8% Fibo and weekly support in the low 1500s could be on the cards.

Ross J Burland FXStreet

Gold daily chart opening gap, the downside correction target

Gold daily chart, weekly support and confluence with 61.8% Fibo

Gold daily chart, 5th wave bearish correction to 61.8% Fibo target scenario

The price of gold has been climbing in five waves on the monthly charts and could be on the verge of a correction. However, considering the geopolitical environment as well as the risks of a global pandemic of the Coronavirus, it could be prudent holding off at this juncture from positioning any shorts. Instead, it may be a higher conviction trade to look for a bullish entry point marked by the opening gap. Failures there opens an opportunity to get long down in the 61.8% Fibonacci retracement of the monthly impulse from the 1460s.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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