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Gold Can Be In Final Stages Of A Corrective Set-back

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Oct 25 2020

Gold is very interesting asset that will always be on investors watchlist, especially during unstable period like we are facing now, and with QE in full force, I think metals has plenty of room to rise.

From a technical point of view we see Gold moving to the downside since August, but the price action is very slow and choppy with overlapping wave structure, which actually suggests a corrective movement, ideally a complex W-X-Y decline within a higher degree wave IV) that can find the support around 1800 level. This level is also interesting if we consider that it comes in at 100 Daily SMA with a similar length-retracement compared to March, while from EW perspective it can be completing the final wave C of Y. So, watch out for a limited downside and be aware of a bullish reversal as we approach the end of 2020.

To me it’s important to see a minor bounce in five waves, before I can call end of a corrective retracement which would be then a constructive looking for opportunities on the long side.

Trade well!




 

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