Gold seems to have carved a meaningful top around $2075 on August 06, 2020. The yellow metal might be on its way to complete its first impulse drop from $2075. If bears manage to print below $1862, it would complete the required impulse drop.
Gold probable wave counts are as follows. The yellow metal has been in a corrective phase at a larger degree (not seen here). After completing a multi-year impulse rally at $1920 in 2011, the metal has been unfolding to complete a corrective phase.
Most valid count for the corrective structure is that of an expanded flat at the moment, since Gold has exceeded $1920 mark already. The drop between $1920 and $1046, could be defined as a larger degree Wave (A) (not seen on the displayed chart).
The subsequent rally through $2075 could be marked as similar degree Wave (B). Please note that Wave (B) has exceeded the extreme of Wave (A) around $1920, which is a typical guide line for an expanded flat corrective structure.
If the above proposed wave structure holds well, Gold should turn lower towards $1450 and further as Wave (C) progresses. Looking further into the lower degree wave counts from $2075 levels, Gold might have carved Waves 1, 2 and 3 around 2015, 2050 and 1862 respectively.
Further, Gold might be carving Wave 4, which could unfold as a triangle and terminate below 2015 levels, before turning lower again. Once an impulse drop is complete, we could prepare to sell on rallies thereafter.
Technical Analysis Team
Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.