Large-scale graphics:
The rising wave that sets the main motion vector of gold starts from the middle of last year. The wave structure does not show completeness.
Medium scale graphics:
The current wave construction started on November 13th. The price has been drifting along the last weeks for strong resistance. The probability of the beginning of the correction phase (B) is high.
Small scale graphics:
From January 4 a bearish wave develops on the graph, which at the time of analysis in a larger model takes the place of correction. The wave structure may have the wrong appearance.
Forecast and recommendations:
The potential price increase in gold in the coming weeks has been exhausted. The period of flat stabilization is expected, a decrease is possible. In such a market only short-term sales in a small lot can be justified.
Resistance zones:
- 1305.0 / 1310.0
Support areas:
- 1255.0 / 1250.0
Explanatory notes for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). The analysis uses 3 consecutive scale graph. Each of them analyzes the last, incomplete wave. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure, the dotted - the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com