Gold Might Have Carved A Top Around $2075
17 August 2020
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.
Prepared by
Technical Analysis Team
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