Hi everyone, I usually don't trade with commodities that often, but this situation couldn't be ignored.
Gold has been in an uptrend for the last one and a half months (this was wave 1), and now has corrected severely to a fib level of 0.382, which is incredibly low for a wave 2. I see this level to be the turning point and start of the wave 3. We have a very strong support; this level is the support from late November and the double top in April and March back in 2020. That support level is aligned with the previously mentioned fib level 0.382. 2% lower from the current price is the long term uptrend support line, which is catching up to the price.
We are facing a resistance downtrend line (the orange line) connecting the previous two tops. Breaking this line will most likely confirm a continuing uptrend and a wave 3.
The current target if support holds and resistance is broken is 2160 at fib level 1.618, which is a massive increase of 22% from current level.
I will update this post regularly so stay tuned. I also quickly have to mention the time scale we are operating with. We could see a massive spike and rally in gold price, where we could hit the target at the end of the year, but this is unlikely. There can happen a lot of things in that time window, so we have to adapt and make new charts on the way probably:)
Anyways good luck;)
Gold has been in an uptrend for the last one and a half months (this was wave 1), and now has corrected severely to a fib level of 0.382, which is incredibly low for a wave 2. I see this level to be the turning point and start of the wave 3. We have a very strong support; this level is the support from late November and the double top in April and March back in 2020. That support level is aligned with the previously mentioned fib level 0.382. 2% lower from the current price is the long term uptrend support line, which is catching up to the price.
We are facing a resistance downtrend line (the orange line) connecting the previous two tops. Breaking this line will most likely confirm a continuing uptrend and a wave 3.
The current target if support holds and resistance is broken is 2160 at fib level 1.618, which is a massive increase of 22% from current level.
I will update this post regularly so stay tuned. I also quickly have to mention the time scale we are operating with. We could see a massive spike and rally in gold price, where we could hit the target at the end of the year, but this is unlikely. There can happen a lot of things in that time window, so we have to adapt and make new charts on the way probably:)
Anyways good luck;)