Gold Technical Analysis, November 17, 2020

Exclusive Markets Analysts
Exclusive Markets Analysts


Technical Outlook:

Gold might be still correcting its recent drop between $1965 and $1850 over the last week. The yellow metal had reached $1900 levels yesterday before dropping sharply lower towards $1864 and swiftly recovering. Watch out for a push through $1914, before finding resistance again.

Gold short term wave structure reveals a potential double zigzag underway towards $1910/15 levels before reversing lower again. It might drop through $1875/76 levels intraday before turning higher again, giving opportunities to trade both sides.

The yellow metal looks vulnerable to reverse lower towards at least $1780 levels within the next few trading sessions. Any further drop from there would threaten to break below $1670 support, going further. We shall take a review again around $1780 levels and turn bullish if required.

The larger degree wave structure reveals that Gold might be unfolding as an expanded flat corrective wave since $1920 highs in 2011. The yellow metal seems to have already completed Wave (A) lower towards $1046 in December 2015.

Going further, Wave (B) might have terminated around $2075 or could print one more high before terminating and reversing sharply lower again. It remains to be seen how prices react around $1780 levels, in the short term. If bulls are back in control, Gold could begin to rally towards a new high.

Either way, the metal is expected to drop over the immediate short term and resistance is seen towards $1910/20 levels. Watch out for a dip towards $1975 first, followed by a rally towards $1910/20 before finally reversing lower again.

Trading Strategy:

Remain short against $2075, target $1780.

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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