rashaba01

Gold has been almost unpredictable in the last couple of weeks, creating a series of ATHs. Looking at the weekly channel we can see it touching the upper line of the ascending parallel channel at 2260-2265. We could see a reversal but its important to be patient and look for signal on the lower time frames.

Spot Gold printed an all-time high of 2225.44, subsequently touching the upper trendline of the rising channel and thus printing a higher high. Bears will be looking for opportunities to sell with stop loses at or just above the 2230 psychological number. 2225.44 also looks to be wave 5 of the elliot wave analysis.

Gold is currently trading in a downward channel and got rejected at 2036 thus creating a lower high. The pair then broke outside of a corrective pattern and now bulls getting rejected again at 50% fibo of 2036 high and 2009 low. Further decline could see it dop to fibo ext -0.27 at last week's low of 2001, make a little correction before dropping to 1980 and completing a fifth fibo wave.

Very sketchy but it looks like Gold is now in a narrow descending trendline. It could be heading to 1870 support before making any further upside move but will have to wait for a clear signal before taking any safer positions.