The rally from December 2015 lows is a part of corrective structure.
The overall structure could pan out in regular flat till the time this rise remains below $1920 which would eventually convert to irregular flat on a cross above $1920.
I have marked some projection levels where the prices could end this up move.
So we may be in the last leg of the rally in Gold prices but the current bull has the power to extend the move up to $2151.
Let’s play this move in the direction of the current upward trend.
But at these points one should be cautious in their long positions as the trend reversal could happen in the time to come.
When to exit longs and initiate the short positions? It is pretty simple that a formation of lower tops and lower bottoms will confirm the downtrend. No other indication would prove to be successful.
Currently we are in a clear up trend with formation of higher highs and higher lows and a stop below the higher low would help us ride this uptrend.
I have marked the projection levels from where potential reversal in prices could be witnessed.
The overall structure could pan out in regular flat till the time this rise remains below $1920 which would eventually convert to irregular flat on a cross above $1920.
I have marked some projection levels where the prices could end this up move.
So we may be in the last leg of the rally in Gold prices but the current bull has the power to extend the move up to $2151.
Let’s play this move in the direction of the current upward trend.
But at these points one should be cautious in their long positions as the trend reversal could happen in the time to come.
When to exit longs and initiate the short positions? It is pretty simple that a formation of lower tops and lower bottoms will confirm the downtrend. No other indication would prove to be successful.
Currently we are in a clear up trend with formation of higher highs and higher lows and a stop below the higher low would help us ride this uptrend.
I have marked the projection levels from where potential reversal in prices could be witnessed.