Gold Resistance Intact Around $2075

14 September 2020

Gold continues to oscillate within a potential contracting triangle structure after printing highs at $2075 on August 06, 2020. The yellow metal had initially dropped sharply through $1862 levels. Since the last 4 weeks, it has remained subdued within a triangle consolidation.

Gold probable wave counts are as follows: A triangle structure could be lower degree Wave 4, before producing a thrust rally above $2075. Alternately, if a meaningful top has been carved at $2075, the yellow metal might break below $1862 confirming a bearish reversal.

Either way, the metal needs to break out of the consolidating structure, to confirm the next larger direction. A failure to break past $2015 could be seen as an indication of potential bearish reversal ahead. Immediate support is seen around $1900, while resistance comes in close to $2000 levels respectively.

If Gold manages to break below $1900 levels, it would threaten to take out $1862 interim support. Once $1862 breaks, it should be seen as a confirmed trend reversal and bears would be inclined to take out $1670 support going further.

Alternately, if prices are able to take out $2000 and subsequently $2015 resistance, it would threaten to break above $2075 and push through $2100/200 levels before finding resistance again. The yellow metal might reverse lower thereafter.

Traders might stay aside until prices oscillate within contracting triangle. They might initiate trades on a breakout of the triangle on either side. Aggressive traders might remain short with protective stops above $2075 levels.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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