Gold hits bullish targets at $1266/67. Preparing to drop soon?
Gold prices hit $1266 levels last week, hitting the fibonacci 0.618 extension of lower degree waves i through iii as presented on 4H chart view here. Please also note that Wave C, within the corrective rally A-B-C structure might have completed its rally unfolding into 5 waves labelled i to v here. It is quite possible that prices hit $1270 levels before completing the wave counts, but one has to remain cautious on the long side from here on. The upside potential remains limited, while the risk of a bearish reversal is higher. Resistance zone could be seen between $1266 and $1270 levels respectively, while support is at $1232 levels (wave iv termination point). A bearish reversal now, and break below $1232 levels would be the first confirmation that medium term trend has reversed. A safe trading strategy could be to take profits from long positions taken earlier and remain aside.
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Disclaimer:
This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
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