FX.co ★ Trading plan for Gold for February 08, 2022

Technical outlook:

Gold prices rallied through $1,823 high during early hours of trade on Tuesday. The price action is in line with what was discussed on Monday and gold could still test $1,825-30 zone before finding strong resistance.The yellow metal is producing a counter trend rally towards $1,825 mark before reversing lower toward $1780 and further.

Gold prices have dropped between $1,877 and $1,753 earlier, carving a meaningful downswing labelled as AB on the 4H chart here. The subsequent rally was corrective and reached up to $1,853 before reversing lower, which is potential C on the chart here. Ideally, the yellow metal should drop below $1,753 to terminate point D and complete the structure.

Since $1,853 highs, Gold prices are possibly unfolding a lower degree a-b-c-d to drag prices lower through $1,753. The metal has carved a boundary between $1,853 and $1,780 and is now pushing higher to terminate c close to $1,825. We can expect a sharp decline toward $1,780 and further if prices hold below $1,853 interim resistance.

Trading plan:

Potential drop to $1,780 and lower from $1,825-30 zone.

Good luck!