Technical outlook:
Gold prices had a good swing on Thursday as bulls pushed higher through $1,841-42 mark before finding resistance. The probability of testing $1,838-40 zone was an alternate before bears came back into play. The yellow metal has dropped sharply and is now seen to be trading below $1,825 at this point in writing, looking to break below $1,820 near term.
Gold's short term wave structure remains unchanged with potential a-b-c in place around $1,853, $1,780 and $1,841 levels respectively. If the above holds well, the yellow metal should be on its way to print d, lower towards $1,780 and complete the bearish structure. Bears will be looking to remain in control until prices stay below $1,841-42 levels.
The larger degree wave structure also remains bearish until prices stay below the $1,877 mark. The metal has already carved larger A-B-C around $1,877, $1,753 and $1,853 levels respectively. If the above is correct, prices are dragging below $1,753 mark going forward, to print larger D. Watch out for a break below $1,800 for further confirmation.
Trading plan:
Potential drop to $1,780 against $1,854
Good luck!
