Large-scale graph:
The price movement of the gold market since mid-August last year is set by an upward wave and reached a strong level of resistance. In this case, the wave structure does not look complete.
Medium-scale graph:
The ascending section of November 13 gave rise to the final part (C) in the larger-scale structure on H4. The probability of the onset of the oncoming counter-corrective wave is high.
Small-scale graph:
The bearish wave of January 4 at the time of analysis does not have a turning potential but may become the basis for a larger reversal pattern in the future.
Forecast and recommendations:
The current time period is not the best situation to trade gold. The estimated purchase potential has been exhausted and no conditions have been created for sales. It is recommended to refrain from transactions until clearer conditions appear on the instrument market.
Resistance zones:
- 1305.0 / 1310.0
Support areas:
- 1255.0 / 1250.0
Explanations of the figures:
The simplified wave analysis uses waves consisting of 3 parts (A – B – C). Three consecutive graphs are used for analysis. Each of these analyzes the last incomplete wave. Zones show calculated areas with the highest probability of reversal. The arrows indicate the wave marking by the method used by the author. The solid background shows the formed structure and the dotted exhibits the expected movement.
Note: The wave algorithm does not take into account the duration of tool movements over time. To conduct a trade transaction, you need confirmation signals from the trading systems you use!
The material has been provided by InstaForex Company - www.instaforex.com