likely rebound; breaking below → retest of 3,418 support.1. Overall Trend
Gold has just experienced a very strong rally, creating a peak around 3,674 – 3,675.
After touching the red resistance trendline, price showed signs of reversal and is now in a correction.
The structure looks like an ABC corrective wave (Elliott/Zigzag type).
2. Key Fibonacci Levels
Fibonacci is drawn from the latest swing low to the new high, important levels are:
0.382: 3,418 – overlaps with a strong support zone (purple box).
0.5: 3,468 – psychological midpoint, potential buy zone.
0.618: 3,516 – golden ratio, often a strong reversal point.
0.786: 3,586 – if broken decisively, price may retest the strong support around 3,418.
3. Possible Scenarios
Scenario 1 (main):
Price corrects down to the Fib 0.618–0.786 (3,516 – 3,586) area, then bounces higher. This is a “buy on dip” zone if reversal signals appear.
Scenario 2 (bearish):
If selling pressure is strong, price could break lower and head toward the major support around 3,418 – 3,420 (confluence of Fib 0.382 and prior structure support).
Scenario 3 (less likely):
Price holds above the dotted trendline → retests 3,674. But this scenario has lower probability since a corrective pattern is forming.
4. Short-Term Trading Suggestions
Buy strategy: Wait for price to reach 3,516 – 3,586 and look for bullish reversal signals (pin bar, engulfing). Stop loss below 3,500.
Sell strategy: If price breaks below 3,586 with strong momentum/volume, short-term sell targets are 3,516 – 3,468.
👉 In summary: Gold is in a corrective phase after a sharp rally. The 3,516 – 3,586 zone will decide the short-term direction. Holding above it → likely rebound; breaking below → retest of 3,418 support.
