Spot Gold May Stabilize Around $4,378-$4,384 Range

Author: John Whitmore

Spot Gold May Stabilize in Support Zone

Spot gold may stabilize around a support zone of $4,378-$4,384 per ounce and bounce. This zone is formed by the 161.8% projection level of a downtrend from $4,537 and the 61.8% projection level of a big wave C from $4,581.

Support Levels and Possible Scenarios

Either of these supports could be strong enough to hold and trigger a bounce. However, the bearish momentum looks strong. A break below $4,378 could open the way toward $4,337.

On the daily chart, the fall from $4,889 is presumed to be driven by a wave b. The strong bearish momentum suggests an extension of this wave toward $4,228. The following upward wave c is likely to be very weak.

More Bearish Scenario

A more bearish scenario is that the current fall is driven by a powerful wave C starting at $4,889. In this case, the market is likely to collapse toward $3,772.

Impacted Symbols

Symbols affected by this headline and their sentiment signals

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