Hello traders, today we will talk about gold, which we see it stabilizing with pretty strong recovery away from the lows that can be signal for a bullish reversal.
Gold was trading lower in a higher degree corrective phase for the last year, but after reaching important yearly 1680 support area in July, seems like downward correction can be completed.
The main reason why support on gold can be in place, is a five-wave recovery away from the lows. This actually suggests that the bottom is in and bulls back in the game. There can be actually room even up to 1800 area, but keep in mind that after every five waves, a three-wave pullback occurs. So, we believe that gold is stabilizing and can see more gains in weeks/months ahead, but ideally after a corrective slow down that can retest 1750 – 1700 support zone.
Another evidence that bulls on gold may wake up soon is also Gold miners (GDX) chart. We can actually clearly see it finishing higher degree daily A-B-C flat formation. With equal wavelength A=C and filled GAP from 2020, we should be really aware of a bullish reversal. Just please have in mind that bulls can be activated only above 33.50 region.
Check also our latest video analysis HERE