Technical outlook:
Gold prices dropped through $1,722 after drifting in a tight range on Tuesday, before finding some bids coming. The yellow metal has crawled back above $1,730 at this point in writing and could be targeting $1,850 in the near term. Please note that the potential remains for yet another drop towards the $1,705-10 area before resuming its suggested counter-trend rally.
Gold has remained in control of bears since March 08, 2022, after printing the $2,070 highs (not seen on the 4H chart here). The price has been carving a series of lower lows and lower highs following a downtrend resistance trendline projected. Bears seem to have carved a meaningful bottom at around $1,722 or are eyeing one more at around the $1,705-10 zone soon.
Either way, a high probability remains for a turn higher towards $1,750, followed by the $1,813-15 resistance zone as marked on the chart here. After carving a meaningful larger-degree downswing between $2,070 and $1,722, the metal might be now preparing to unfold a similar degree corrective rally back towards $1,900 in the next several weeks.
Going forward:
Gold prices have dropped in the past few days but the recent lows have been accompanied by a strong bullish divergence on the 4H Rsi as shown here. Bulls will remain poised to take immediate resistance out at around $1,750 to register themselves and also confirm that a meaningful low is in place at around $1,722.
Trading plan:
Preparing for a potential rally towards $1,750 and $1,813 against $1,700
Good luck!
