It looks like gold is trying to make a statement. The Three Black Crows on the hourly chart could be a healthy start of wave 5. Let’s see how the day closes in 6+ hours.
Copying Yesterday’s Forecast:
Gold is likely to continue horizontal moves between $1760-$1800 for a few days to complete wave 4 as on the chart below. After that, expect a rather strong wave 5. Two most typical targets for w5 would be $1720 and $1660. As waves 5 tend to be the longest for metals, $1660 has higher chances.
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.
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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