Gold is in the long-term 3rd wave
Gold is extending higher in the long-term impulsive upside 3rd wave and it is in running flat correction for an extension higher as you can see on a monthly chart. Does this mean that the Gold is heading higher? Should you be building the buying position…If we look at the monthly chart we can see that the Going for a deeper retracement of 2016-2020 swing high and is rejected by 1906 resistance. The upside support is coming at the point D and 38.2% Fibonacci retracement.
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At this point we can’t rule out a violent price action around the 1780-1800 zone we are testing now as this is exactly the strong RESISTANCE for a downside continuation. At the moment a sustained break below this zone will be a clear indicator that the recent upside reversal is invalid. We can see that clearly on the weekly chart below. The latest weekly price action is indicating a squeeze zone consolidation which has to be broken to test 1700. The consolidation triangle downside resistance is 1787.
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We have used the combination of the top-down trading analysis to get these key levels explained in the charts.