GOLD – Traversing Uncertain Territory
GOLD continues to be range-bound. There are still chances for Bears or Bulls to gain the upper hand. Today’s analysis will provide a short-term update on GOLD.
Bearish Bounce Opens Up the Game Again
GOLD produced a significant bearish bounce at a key resistance level of around 1325. Price action since then could easily develop into a full blown impulse to the downside. The sideways range since May 1 could either still belong to the same bearish swing which started all the way back on Apr 11 (i.e. yellow wave 4 count), or the range may have been part of an overall bigger bearish swing already (i.e. blue wave 2 scenario). In any case, the immediate bias is to the downside, especially if price can touch below 1304.27. This would make an excursion to test the 1285 – 1290 zone very likely, which in turn, will be a major bounce or break zone for GOLD.
The third alternative is that some more complex zigzgag has been unfolding to the downside, which has similar implications to the previous two scenarios in the short-term.
The situation will need a bit more time to develop. It’s probably best to re-evaluate price action by the end of the week before making any trade decisions.
All the best along your trading journey.