Technical outlook:

Gold might have completed its corrective rally that had begun since $1,676 lows around March 08, 2021. The yellow metal has produced a complex corrective rally consisting of 3 waves. The first wave carried prices through $1,755, followed by a drop towards $1,678 levels respectively. The final leg has reached up to $1,790 before turning lower again. Also the fibonacci 0.50 retracement between $1,875 and $1,676 has been tested.

Gold is seen to be trading around $1,770 levels at this point in writing and might test $1,780 zone before reversing lower again. Immediate resistance is seen around $1,820 mark, while support is at $1,723 levels respectively. A break below $1,723 will confirm that a meaningful top is in place around $1,790 levels and bears are back in control.

On the flip side, it is also possible for Gold to rally towards $1,800 to test fibonacci 0.618 retracement before reversing lower again. Either way, prepare for a drop towards $1,650 and $1,550 levels, going further. Also note that resistance trend line which broke earlier is now providing the necessary angle for prices to print lower lows below $1,676.

Trading plan:

Remain short, stop @ 1,875, target @ 1,650 and 1,550.

Good luck!

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.