Gold has been drifting sideways since printing $1818 highs recently. The yellow metal needs to break below immediate support at $1750, to confirm a potential bearish reversal. A break below $1792 would accelerate lower towards $1750, going forward.
The yellow metal remains very much into the buy zone of both trend lines plotted here. A drop towards $1750 will also bring prices into the sell zone for the first time. It will instil further confidence to sell on rallies thereafter.
Immediate resistance is at $1818, while support remains around $1750 respectively. Even if prices break above $1818 levels, please note that upside remains limited and it could be a potential bull trap. It might be good to avoid initiating fresh long positions for now.
The larger degree wave structure for Gold is as follows: The yellow metal had carved a meaningful top in 2011 around $1920 mark. Since then, the yellow metal has been in a larger degree corrective drop. The recent highs around $1818 could be potential termination of the second wave within the corrective zigzag.
The above structure is not seen on the chart presented here and if it holds well, the yellow metal should be on its way lower, as the last wave resumes. To confirm a bearish reversal, we need to see a drop below immediate support at $1750 at least.
Once the yellow metal breaks below $1750, it might be good to sell on rallies with a protective stop above $1818.
Technical Analysis Team
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