ANALYSIS TO GOLD
Updated Trend Analysis:
Channel Formation: The chart now includes an ascending channel that spans from 2020 to 2025, suggesting a long-term bullish trend. The upper boundary of this channel could act as a resistance level, while the lower boundary may serve as support.
Elliott Wave Count:
The Elliott Wave count remains consistent with the previous chart, showing that wave (5) has likely completed its run. This typically signals the end of an impulsive bullish phase and the beginning of a corrective phase.
Fibonacci Retracement & Extension:
The Fibonacci levels are reinforced with the channel's boundaries. If the correction unfolds as anticipated, the Fibonacci levels around $2,085.87 (0.618 retracement) and $1,981.02 (0.764 retracement) are crucial. These levels also align with the lower trendline of the ascending channel, adding to their significance as potential support zones.
Price Targets:
Short-Term: A pullback to the Fibonacci levels mentioned above is still expected, with the price possibly touching the lower boundary of the ascending channel, around the $2,075.97 level.
Long-Term: If the correction holds within the channel, the long-term target could reach the upper boundary of the channel, potentially near $3,429.34. This aligns with the extended Fibonacci projections beyond wave (5), indicating a bullish continuation after the correction.
RSI Analysis:
The RSI shows a bearish divergence, indicating a possible slowdown in momentum. The RSI level of 64.74, while still within the bullish territory, suggests caution as the market approaches overbought conditions. This further supports the likelihood of an impending correction.
Conclusion:
Gold is currently at a critical juncture. While the long-term trend remains bullish within the ascending channel, the short-term outlook points to a potential correction. Key levels to watch include the $2,085.87 and $1,981.02 Fibonacci retracement levels, which align with the lower boundary of the channel. If these levels hold, gold could resume its upward trajectory, targeting the upper boundary of the channel near $3,429.34.
Traders should closely monitor price action at these support levels and the behavior of the RSI to gauge the strength of the correction and the potential for a renewed bullish phase.
Channel Formation: The chart now includes an ascending channel that spans from 2020 to 2025, suggesting a long-term bullish trend. The upper boundary of this channel could act as a resistance level, while the lower boundary may serve as support.
Elliott Wave Count:
The Elliott Wave count remains consistent with the previous chart, showing that wave (5) has likely completed its run. This typically signals the end of an impulsive bullish phase and the beginning of a corrective phase.
Fibonacci Retracement & Extension:
The Fibonacci levels are reinforced with the channel's boundaries. If the correction unfolds as anticipated, the Fibonacci levels around $2,085.87 (0.618 retracement) and $1,981.02 (0.764 retracement) are crucial. These levels also align with the lower trendline of the ascending channel, adding to their significance as potential support zones.
Price Targets:
Short-Term: A pullback to the Fibonacci levels mentioned above is still expected, with the price possibly touching the lower boundary of the ascending channel, around the $2,075.97 level.
Long-Term: If the correction holds within the channel, the long-term target could reach the upper boundary of the channel, potentially near $3,429.34. This aligns with the extended Fibonacci projections beyond wave (5), indicating a bullish continuation after the correction.
RSI Analysis:
The RSI shows a bearish divergence, indicating a possible slowdown in momentum. The RSI level of 64.74, while still within the bullish territory, suggests caution as the market approaches overbought conditions. This further supports the likelihood of an impending correction.
Conclusion:
Gold is currently at a critical juncture. While the long-term trend remains bullish within the ascending channel, the short-term outlook points to a potential correction. Key levels to watch include the $2,085.87 and $1,981.02 Fibonacci retracement levels, which align with the lower boundary of the channel. If these levels hold, gold could resume its upward trajectory, targeting the upper boundary of the channel near $3,429.34.
Traders should closely monitor price action at these support levels and the behavior of the RSI to gauge the strength of the correction and the potential for a renewed bullish phase.
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