As shown in the Daily chart, it is evident that Gold is currently moving in a downward channel. Both on Thursday and Friday, the price was unable to break the upper resistance of the channel, indicating a further leg downside till 29,300.
Further analysis prove that the on going 4th wave can retrace the prices to 29300 which is also the current price where the Gold price can find support in the channel. A breakout above the on going channel would give indication of the beginning of the 5th Wave, taking the price movement upwards, and a likely break of the previous high.
A fresh long position can be created at the levels of 29,800 on closing basis, placing stops at about 28,900 with a target of at least around 30,400. And further till 31,500. However, one can also buy around 29,300 with the same stop loss and same targets.
Putting it all together, one should wait for a valid breakout of the channel to create new long positions.
Analysis By : Team Koyostocks.
