Large TF:
Since August last year, the trend of gold has been rising. Analysis of the wave structure shows its incompleteness. In recent months, the course is adjusted.
Small TF:
The price decline of February 20 completes the year-long correctional model, which has the form of an expanding triangle. The price reached the upper limit of the strong reversal zone.
Forecast and recommendations:
Despite the fact that there are no turn signals, the continuation of the current gold correction is not expected. Wave algorithm indicates a speedy recovery of the ascending course. Traders need to keep track of emerging reversal signals in order to search for entry into long positions.
Resistance zones:
- 1375.0 / 1380.0
- 1315.0 / 1320.0
Support areas:
- 1280.0 / 1275.0
Explanations for the figures: The simplified wave analysis uses waves consisting of 3 parts (A – B – C). On each of the considered scales of the graph, the last, incomplete wave is analyzed. 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