Gold Technical Analysis, August 11, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

Gold:


Technical Outlook:

Gold had yet again hit fresh highs around $2075 last week. The yellow metal has been pulling back and has managed to print intraday lows around $2014 today. It is seen to be trading around $2019/20 levels as we prepare to publish, and could be close to completing an impulse wave.

Gold has been rallying since May 2019 after printing lows around $1262 levels. It has remained in control of bulls as they carved a series of higher highs and higher lows towards $2075 mark. A bearish reversal remains high probability from here.

Looking at the larger degree wave structure, Gold has been in a corrective phase since 2011 highs at $1920. Since prices have pushed beyond $1920 mark, the possibility of a zigzag is eliminated. An expanded flat could be in the making instead.

High probability wave counts in Gold could be an A-B-C expanded flat in the making since $1920 high. Potential Wave A could be labelled around $1046, Wave B might have potentially terminated around $2075 last week and Wave C could be preparing to turn lower again.

We need to allow an impulse drop to confirm that much deeper correction is on its way. Gold seems to be close to completing an impulse from $2075 highs, on the hourly chart. Once it is complete, it could be ideal to look out for counter trend rally to initiate sell.

Immediate short term support is seen towards $1950/60 levels and a break below that mark would be encouraging to bears. Gold might be preparing for a huge reversal from here.


Trading Strategy:

Flat for now. Preparing to sell again.

Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.

Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.

Share this post    

Share on facebook
Share on twitter
Share on linkedin
Share on email