#XAUUSD = Daily Analysis – Possible Sharp Drop = 23.06.2021 #Gold #investing #charts $GDX #preciousmetals $XAUUSD

Gold continues as outlined last week. Today it closed with a Gravestone Doji that suggest a possible sharp drop. The odds of a 1+% decline in the next 24 hours are very high. Let’s explore the hypothesis from different Angles.

Weekly
Last week gold completed a strong Tower Top formation that signals the lower lows. The indicators are supportive of the move.
Odds: Strong Bearish

Daily
Gold completed Three Black Crows on 1-hour and 2-hour charts and I issued the respective Alerts earlier today. The day closed with a Gravestone doji that signals a possible sharp decline. There are high odds of such event in the next 24 hours.
Odds: Strong Bearish

Forecast:

The last two days Gold behaved precisely as forecasted. Now it seems time to move further down. Two most immediate targets would be $1760$1730.

However, as at this point is not clear whether wave 3 actually ended, there is a possibility that the structure being developed is a bearish flag/pennant and wave 3 could be extended. In this case all targets would move further down. We would know this later, hopefully by the end of week.

There is a possibility that the flag gets extended by one day. In this case the closure tomorrow should be below 1790-1795.

Note that a strong bullish move with a daily closure above $1825 could signal a trend reversal. Though, the odds are slim for this scenario.

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Yesterday’s Daily Analysis

Latest Weekly Analysis + Long Term Forecast

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