Gold stopped today at $1805, the minimally low level that I identified for a possible pullback and entered an inflection zone. While the candles are pointing further downwards, the Elliott waves keep an option for a rally open.
Let’s evaluate both perspectives along with TA.
This daily overview contains:
– daily candle chart and analysis of perspectives;
– 2hr EW chart and a short-term projection;
– monthly EW chart and long-term perspectives.
The quarterly and monthly frames still remain bearish. Today’s move put a big question mark on a possible bullish monthly candle.
Today’s candle is bearish Maribozu. It is viewed as a strong bearish continuation candle. It closed below 20 EMA and flipped PSAR, RSI and MACD bearish in one day.
The message is quite clear – expect another leg down. However, as gold is extremely oversold on smaller hourly frames, it would probably move sideways or slightly upwards for a few days. As long as the daily candle does not close above ~$1825, the odds will stay bearish.
Next: Elliott Waves and Forecast
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