Elliot wave in the process of forming, correction waves to follow (ABC) back up to the strong psychological level 1482. RSI and stochastic also showing oversold.
After an overall bad few months for the precious metal, we can expect a start to the upside now. Historically gold tends to rally through december/january.
We can see, the lows of november hit the critical 0.618 retracement level indicating to me the start now of the correction. Upside target of around 1555 possibly looking further to 1600.
My view on gold at the moment is that it will retrace to the trend line that has previously been respected twice and then rocket from there. 1466 is the region to watch for Long opportunities. Gold is cheap at the moment. 1600 expected by new years. Overall trend on daily is bullish.
1466 also sits perfectly on the 0.382 fib level retracement.
heading back up towards trendline, 0.786 fib level sits at the resistance zone where the trend line will be tested.
Also had the 50 + 200 sma crossover indicating an overall perish sentiment.
