Technical outlook:
Gold prices have raised theough $1,876 high on Thursday, slightly higher that what was projected around $1,865-66. The yellow metal might be preparing to turn lower from here and drag towards $1,825 going forward. Bears are looking poised to remain in control as long as prices stay below $1,879-80 mark. Watch out for a bearish signal appearance on the hourly chart for confirmation.
Gold prices are working on the recent upswing between $1,780 and $1,880 as depicted on the 4H chart here. The Fibonacci 0.618 retracement of above rally is seen around $1,820 level, which could be the next potential bounce higher. The yellow metal faces immediate resistance around $1,880, while support comes in around $1,820, followed by $1,780 and $1,753 levels respectively.
Gold prices are carving a corrective Gartley structure since $1,880 high registered on Tuesday. The corrective wave might drop to $1,840 and up to $1,825 in the near term to complete the counter trend. Bulls are expected to be back in control thereafter and continue pushing towards $1,916 mark in the next several trading sessions.
Trading plan:
Potential drop to $1,840 against $1,885
Good luck!
