GOLD – Range Bound Medium-Term Outlook

2 min read
HubertM

HubertM

Author

Dear Traders,

Gold has taken a beating over recent trading weeks. What path lies ahead for the precious metal over the coming weeks? This post will provide an updated medium-term wave analysis.

Sideways Extension Likely…

Gold appears to be in an incomplete correction to the upside since late 2015. The price action since that low be could be shaping up into a zigzag that is tracing out a barrier triangle within wave B or X ( see labels in chart above). 3-wave swings have been occurring in both directions since mid 2016, suggesting that we are still witnessing an extended sideways move. A potential barrier triangle is currently one of the best candidates to make sense of the structure so far.

There is significant support around 1200, which could act as a completion level for wave C of the triangle. This should be followed a strong bullish move that will retest the previous highs around 1370 during wave D. In any case, the current downward momentum does not seem fully complete yet, so we may yet have to wait some more weeks before a true bullish reversal could set in again.

All the best along your trading journey

Hubert

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