Good day traders! Gold has been trading lower since the high back in September this year and the current price structure might suggest that we are seeing a corrective pattern that has not yet completed.
The move lower, into the October low, looks like a 3-wave structure that was followed by a complex correction higher that ended early November. We may be dealing with what is referred to as a Double ZigZag.
Assuming that this whole pattern is corrective, then Gold might be in the early phases of another 3-wave move lower that could target the bottom of my channel.
Price took out the October low on Friday last week which could be the A-wave of the final ZigZag lower. The A-wave might extend lower, but if price bounces higher again, creates a lower high, followed by another drop then price could target the 1420 price level or even go lower towards the 1400 level.
My bias on Gold is bullish over the long-term, but the corrective nature of the current price structure suggests that I should wait before I want to get into Gold again.
Until next time, happy and safe trading!