GOLD broke and bounced at critical price levels, leaving all options still on the table. Today’s analysis will provide a short-term update on the most recent price-action.
GOLD briefly broke through the critical multi-year support trend line (black line) yesterday, but reversed impulsively after NY open. The fake breakout probably formed wave 5 of the bearish swing that started on May 11.
Price action since then has produced a small but clear impulse to the upside. This situation leaves Gold traders unfortunately none the wiser than last week. The only forecast that can be made (with a fairly high certainty right now) is that another bullish motive wave has to follow in all possible scenarios, either creating a ABC zigzag or the start of a bigger bullish impulse. (both options are shown in the black labels). So a retest of 1300 is most likely on the cards.
The situation gets interesting after we get a second impulse to the upside. The subsequent swing will be critical in determining the direction for the weeks ahead. It is practically impossible to tell right now whether the structure is merely a short term bullish correction or a bigger reversal.
Scalping traders could consider a buy position to trade Wave c, but that is all for the time being.
All the best along your trading journey.