Gold Hits $1944/45 Highs; Support Is Towards $1825
27 July 2020
Gold continues to print higher highs and higher lows with yet another around $1944.77 levels today. The yellow metal has been defying resistance since last several weeks and has produced a religious uptrend as displayed here.
Gold remains well into the buy zone of both immediate and outer trend lines and is showing no signs of a corrective drop ahead. The metal seems to be trading around $1932 levels as we prepare this article and needs to break below $1790 to turn bearish.
Gold probable wave counts shall be defined later, as it has print above $1920 highs since 2011. It remains to be seen if the yellow metal is producing an expanded flat or not. It might be advisable to remain flat for now and allow price action to unfold.
The earlier proposed wave structure of a zigzag stands invalid for now since Gold has managed to print above $1920 levels. We also need to re-look at the potential counts on the earlier drop between $1920 and $1046 levels.
Most traders might want to remain flat for now until Gold produces a clear 5 waves lower on the smaller time frame. Once that is confirmed, the metal would be good to be sold on rallies. At the moment, it is safe to remain flat.
A break below the immediate trend line support, would bring the metal into the sell zone. Once it enters the sell zone, the metal also needs to break below $1790 support to confirm a potential bearish reversal underway.
Prepared by
Technical Analysis Team
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