Sharp fall on gold seen yesterday from 1600
level with extensions through support line suggests that corrective wave 4 is
complete with failure wave (c) at 1617 region. Also notice that recent weakness
has extended through the support line of a base channel which is also very
important evidence when trying to identify a continuation mode. As such, we
think that impulsive price action is underway, now towards 1540. Meanwhile any
minor bounce should be wave four in the middle of an impulsive weakness that
may find resistance around 1575-1580. Critical level is at 1590; if breached
then we will look for even more complex wave 4 but still part of a corrective
movement.
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