Gold Technicals: Overextended move hit heavy targets

London (Feb 21)  Even though we are still in our long Gold from 1560, right the precious metal has hit some heavy bull targets to the upside. This by no means is a bearish case for Gold, but rather an opportunity add on a deep correction. Technically speaking some big bull tragets have been hit in Gold. The 1635 zone is a key pivotal level on the daily and we are te4sting the top of the bullish structure. Heavy bulls will not likely be adding at these levels but short term bulls will definetly be taking profits.

The way I see the bullish play is to wait for a deep retracement back to the 1600-1610 level; 1610 being the POC of all the volume above 1590. More coronavirus cases are being reported every day and not only from Asia. Today cases were reported from Iran and Italy which means that the epidemic is spreading and investors are going to look at Gold for safe heaven in fears of an equities meltdown.

FXstreet

 

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