GOLD – A wave B correction is underway?
A larger wave IV corrective wave is underway from 1921 (Sep’11 high) which has the potential to test 1460/1308 on multimonth basis (Alternative view is that a wave (5) rally is underway for a target above 1921). The 1825/1850 resistance would remain as tough barrier in the medium term ahead of major 1921. A break below 1645/1630 would renew the bear trend toward 1590/1527 initially.
The metal’s pullback from 1796 could be a wave B correction. Downside focus is now on 1713. Potential hourly divergences support a bounce attempt. The 1754/1775 resistance looks to cap strength in the immediate term. A break below 1713 would deepen the correction toward 1690/1665. The medium uptrend scenario would be weakened if the metal breaks the key swing low at 1646. Bulls need to clear 1796 to renew the uptrend to/toward
1825/1850.
