Gold - Pullback on the cards

Gold (CMP: 1291$) The quarterly chart shows the long term Elliott wave counts on Gold ($). In the perspective of Elliott wave theory, major (5-3-5-3-5) impulse wave structure has completed and now we are in corrective structure which is labeled as a-b-c. Wave a has completed and wave b (pullback) is progressing with the target of 1460 – 1550 levels which is 38.2%-50% retracement level of wave a.

Last quarter, Gold has tested 38.2% retracement level of entire bullish run and now it’s bounced back with positive candle which creates strength.

On the weekly chart, the stock has tested channel line support level and bounced back with positive candle which signifies pullback on the cards. Wave a has completed at 1180 levels and Now wave b is heading towards 1460 – 1550 levels. Support level placed at 1295 – 1270.Unless violation of 1180, the trend will be bullish.

In an addition, RSI shows multiple leg of positive divergence which indicates bullish.