Gold appears to be in Wave 3 on the higher time frame, with the current movement likely representing Wave 4 of Wave 3. We have marked key support levels that could serve as areas for potential bounces or accumulation.
Current Wave Structure
- Wave 4 Analysis: We believe that Gold is currently in Wave A of Wave 4. Given the bearish divergence and proximity to support levels, a bounce is likely in the near term. However, it’s also possible that this entire structure could complete Wave 4 if a stronger reversal does not occur.
- Support Levels: Support has been highlighted on the chart. We expect Gold to respect these levels during this corrective phase, with the potential for a deeper dip if the correction continues.
Strategic Positioning
Given the current setup, a gradual entry into Gold positions could be considered. Here’s how:
- Scaling In: Starting to scale into positions now allows for exposure to any potential bounce off the current support.
- Adding on Dips: If Gold dips further into the highlighted support zone, increasing positions could be considered as Wave 4 completes, providing a stronger basis for an eventual move into Wave 5.
Conclusion
The most probable scenario is a short-term bounce within Wave A of Wave 4, followed by potential deeper correction into Wave 4’s support levels. This could offer a strong entry point for a move toward the next bullish phase in Wave 5.