Technical outlook:
Gold prices slipped through $1,832 mark in the early hours of Asia Session on Wednesday. The yellow metal is witnessing some bids since then and is seen to be trading close to $1,838 level at this point in writing. Bulls might be inclined to come back in control but bottom line remains that prices should hold above $1,832 going forward.
Gold prices have been dropping since the $1,998 high registered on April 18, 2022. The yellow metal seems to have completed the drop and successfully carved a meaningful downswing between $1,998 and $1,832 levels respectively. It the above structure holds well, a corrective rally should resume soon towards $1,892 and $1,935.
It is also worth noticing that the recent swing low around $1,832 has been accompanied by a bullish divergence on the RSI presented here. High probability remains for a bullish reversal from here and near term targets are $1,865 and $1,892 levels respectively. Traders might be preparing to initiate fresh long positions now.
Trading plan:
Potential rally through $1,892 against $1,820
Good luck!
