Monday, August 1, 2016

GOLD: Conditions For Bearish Resurgence

Last month, we had a good chance to short Gold as we believed that there was a good impulse wave completion and a correction to 1200 in the medium term was very much likely.

Read Gold updates HERE

Price, of course did not get to our targets at 1300 and 1250. Price, shy of hitting 1300 rallied fast which could signify that the bullish move will continue and break above the resistance price @ 1375.

The chart below shows that the rally could be the correction of the bearish move from1375; talk of wave 2 or B of that degree.

Price is now at a very important zone where we usually see reversals. A terminating pattern, at least , is needed if the bearish movement will continue.

 The C-wave of this pattern can be seen clearly in the chart below.


The C-wave should not be taken as an ending diagonal. It will likely be an impulse wave with an extended wave 1.

For this pattern to hold, price should be rejected below 1361/2. Any move above that will be a big threat to the bearish resurgence.

We will watch for a break below the converging wedge-like impulse for a bearish opportunity. A good break below 1345.055 will be the first step toward the expected bearish resurgence.

Join us as we share this trade with entry, exit and target prices in our Skype and Whatsapp trading room.


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