Gold might have carved a meaningful top around $1790 recently, or is set to top around $1795 going forward. Believe it or not, the yellow metal might be close to carving a formidable top soon. Bears might remain inclined to take control back and break below $1720 initial support.
Gold hourly chart presented here clearly implies that the yellow metal is back into the buy zone of its support trend line and is trading close to $1776 as we prepare to publish this article. A continued rally from here would challenge interim highs at $1790.
Alternately, a break below $1760 would confirm that the yellow metal has enter into the sell zone and that bears might be back in control. With respect to price action, a break below $1760, might push further lower towards $1720, going forward.
Going further, a break below $1670 would confirm a potential trend reversal on larger time frames. On the weekly chart, initial support is seen towards $1670 levels and if bears are successful in breaking lower, Gold would turn bearish and rallies after that should be aggressively sold into.
The larger degree wave structure (not seen here), might be looking bearish already as Gold is carving a large corrective wave since $1920 highs in 2011. It would be interesting to see how long Gold prices hold up in the short term.
Most conservative traders might want to remain flat for now, and wait for price action to break below $1720 and $1670 respectively, to initiate short positions. On the flip side, aggressive traders might be short already, with protective stops above $1795/90 and projected targets below $1670 over the short term.
Technical Analysis Team
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