Gold – Is The Short Term Rally Over?

Gold seems to have form a 5 waves movement to the high at $1783.58 on the hourly chart. It may also be an final part of an A-B-C correction, with the C part, ending at the Fibonacci 127% price projection target. This correction had started from the low of $1723.60. MACD has given a divergence warning of a possible price high on the hourly chart. Stochastic is already in the overbought extreme. We are likely to see a quick return to $1760. Above $1783.60 would negate our short term bearish view.

Sell $1775 for $1760 with a stop at $1784.

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