Gold is carving lower highs around $1710/15

Gold remains vulnerable to extend losses below $1640 levels in near term. For the long term, a meaningful top might be in place around $1747 and the yellow metal might be preparing to turn bearish at a larger degree. It is too early to predict at this point in time as we need to see a break below $1450, critical support. Having said that, initial bearish signs begin to have appeared on smaller time frames along with a Shooting Star on weekly chart. The metal is facing resistance around $1710/15 levels as we write, and a bearish turn there would see a lower degree 3rd of 3rd wave drop towards $1640, $1580 and further.

Strategy:

Short against $1747, targeting $1640, $1580 and $1450 in the medium term.

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