Trading plan for Gold for February 10, 2022

Technical outlook:

Gold prices have exceeded the projections slightly and reached through $1,834-35 mark on Wednesday. The short-term structure still remains bearish as the yellow metal prepares to turn lower towards $1,780 and further from current levels. Bears are poised to be back in control as long as prices stay below $1,854 interim resistance.

Gold's short term wave count is suggesting that potential down a-b-c are in place around $1,854, $1,780 and $1,834-35 levels respectively. Also note that prices have tested the Fibonacci 0.618 retracement of the downswing ab between $1,854 and $1,780, just around $1,834-35. If the above structure holds well, we can expect a sharp reversal lower through $1,780 at least.

Only a consistent push above $1,854 from here will change the bearish structure in the near term. The larger downswing AB is between $1,877 and $1,753 levels as marked on the 4H chart here. If correct, larger C is in place around $1,854 and prices are working towards a larger D, which should ideally terminate below $1,753.

Tradng plan:

Potential drop to $1,780 against $1,854

Good luck!