Technical outlook:
Gold prices dropped through $1,837 lows on Monday before finding support again. The yellow metal jumped through $1,852 on Tuesday before easing off a bit. Bulls might be poised to come back in control and push through $1,860 in the near term. The price is drifting sideways now and needs to break above $1,870 to accelerate.
Gold prices are working on a counter trend, moving from the low of $1,786. The price could be into its last leg higher towards $1,920. The metal has already found support around $1,828, which is the Fibonacci 0.50 retreacement level of the first leg between $1,786 and $1,870 levels respectively. If a potential triangle is carving, prices couldremain sideways for a while.
Gold prices have been in a downtrend already and it is expected to resume lower again from $1,920. The recent larger degree downswing is between $1,998 and $1,786, while Fibonacci 0.618 retracement is close to $1,920. High probability remains for a turn lower from there as bears prepare to come back in control.
Trading plan:
Potential rally through $1,920 against $ 1,781
Good luck!
