Gold Can Be In Final Stages Of A Corrective Set-back
Updated
Hello traders!
Gold is very interesting asset that will always be on investors watchlist, especially during unstable period like we are facing now, and with QE in full force, I think metals has plenty of room to rise.
From a technical point of view we see Gold moving to the downside since August, but the price action is very slow and choppy with overlapping wave structure, which actually suggests a corrective movement, ideally a complex W-X-Y decline within a higher degree wave IV) that can find the support around 1800 level. This level is also interesting if we consider that it comes in at 100 Daily SMA with a similar length-retracement compared to March, while from EW perspective it can be completing the final wave C of Y. So, watch out for a limited downside and be aware of a bullish reversal as we approach the end of 2020.
To me it’s important to see a minor bounce in five waves, before I can call end of a corrective retracement which would be then a constructive looking for opportunities on the long side.
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Gold is very interesting asset that will always be on investors watchlist, especially during unstable period like we are facing now, and with QE in full force, I think metals has plenty of room to rise.
From a technical point of view we see Gold moving to the downside since August, but the price action is very slow and choppy with overlapping wave structure, which actually suggests a corrective movement, ideally a complex W-X-Y decline within a higher degree wave IV) that can find the support around 1800 level. This level is also interesting if we consider that it comes in at 100 Daily SMA with a similar length-retracement compared to March, while from EW perspective it can be completing the final wave C of Y. So, watch out for a limited downside and be aware of a bullish reversal as we approach the end of 2020.
To me it’s important to see a minor bounce in five waves, before I can call end of a corrective retracement which would be then a constructive looking for opportunities on the long side.
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
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