I WARNED GOLD BULLS BUT...CRUCIAL AREA FOR GOLD'S FUTURE!As i tried to warn the Gold's bulls about this ''fake rally'' at my previous article now it's good time to start to search for a reversal area.
Gold as most metals are still in a bear market.From the long-term view on gold we can undesrtand that after the 5 wave structure of the 5 Elliott waves we can are in a A-B-C correction waves as mentioned in previous article.
Now of course the hawkish F.O.M.C played a role at recent Gold's rally but this was something it has been expected a lot time now so of course it's priced in our technical analysis.
The question is if Gold can keep this short-term ascending channel or mid and long term trend will remain bearish.
TECHNICAL OBSERVATIONS
1.As we can see at the chart Gold moved until the 1.618 Fibonacci extension from the initial uptrend move(AB).
2.We warned you that there is no too much space for Gold's Bulls as a lot of factors palyed role explained in article below.
3.If we take the Fibonacci extension from the last swing up we can notice that the well respected 1.618 Fibonacci extension comes at 1,237$/ounce area and coincides with a lot of facts that's why is very important.
4.At the 1,240$/ounce area we have:
a.Previous support/resistance level.
b.We have the 200EMA.
c.We also have the bottom trend line of the short-term ascending channel.
d.The 1.618 Fibonacci extension of the last upward swing as mentioned (CD).
e.We also have the 61.8% Fibonacci retracement of the bigger upward swing (ED).
For all the reasons mentioned this area is very important area as if this area doesn't help gold for a bounce is a bearish sign and we are looking for further downward continuation at S/R levels shown at the chart with blue dotted lines,if this area provides a support level for gold we should gradually another effort of Gold to break the 1,300$/ounce area.
No matter what will happen we will keep you informed for more profits.
Thank you for support.
Happy trading guys!
