Gold has made a low at 1636$ just 4$ lower than our initial target. From that level prices managed to climb higher towards 1670$. Gold is now trading just above 1650$ in a sideways pattern.As shown in the chart below, gold could have finished the entire wave 2 just on top of the rising trend line we were expecting it.
As shown above, the entire A-B-C wave II correction made a bottom at the 61,8% retracement and on top of the plotted blue trend line. In order for our wave count to be correct and confirmed, prices should now start an upward impulsive move.
As shown in the above chart, we could count the rise from the lows as a 5 wave impulsive move. This is an initial positive sign for gold bulls. Moreover, prices have been moving sideways within the range depicted above and this could just be part of a corrective wave. Therefore we assume that it is more probable to see another 5 wave upward movement towards 1700$. Stop loss in any case should be the start of wave 1 if we assume the rising trend has restarted.
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