Gold Technical Analysis, July 07, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts

Gold:


Technical Outlook:

Gold has been probing resistance around $1790 since yesterday. The yellow metal is trading around $1785 levels as we prepare to publish this article, and bears might be inclined to break below $1750 interim support, going forward.

Alternately, a break above $1790 would open door toward $1800 levels, before Gold finds resistance again. Having said that, it is also more or less clear that upside remains limited for the metal and we can expect a bearish reversal anytime soon.

We continue to bring up the weekly chart to keep the bigger picture in mind. Gold has been in a corrective phase since $1920 highs in 2011. The previous rally from $250 levels was an impulse wave, which terminated around $1920.

An impulse wave is usually followed by a corrective wave, which normally unfolds into 3 waves but in the opposite direction. The drop between $1920 and $1046 could be considered as the first Wave (A), within the (A)-(B)-(C) corrective phase.

Also note that Wave (A) had sub-divided into 5 waves and hence the structure is that of a zigzag, which unfolds as a 5-3-5. The rally from $1046 has been in 3 waves and might have terminated around $1790 levels already. If not, it is expected to complete soon around $1798 levels.

If the above larger degree counts hold, Gold is very close to resuming Wave (C) lower towards $1046, going further. A break below $1750/20 would confirm the first step towards a meaningful reversal.


Trading Strategy:

Aggressive traders short against $1795. Conservative traders remain flat for now.


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.

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.

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