Gold Recovery Fades After Key Fibonacci Rejection as Bearish Wave Structure Resumes

Gold has seen a pretty nice recovery from 4400 levels, but notice that the move up has unfolded in three waves from the low, reaching right into the 78.6% retracement, which appears to be a very important level. What we have seen in the last few weeks is a strong reversal through the trendline support. This suggests the market could be positioned for further weakness, especially after the smaller channel in blue wave two has also been broken as expected, and now causing a third wave selloff in the now that will cause third wave sell-off. So more weakness can be in the cards while price is below 5k

So we still think that a higher degree wave four correction is underway from the January highs, and there is a good chance that price will continue moving toward the lower side of this range.

Looking at the bigger picture charts and the structure there, we see very strong support around the 4000 to 4300 area.