ActionForex's wave analysis calls gold a buy after the metal broke through the $4,400 resistance level, a mark that also lined up with the 61.8% Fibonacci correction of its May downward move. The firm's wave count points to $4,600 as the next level in play.
Gold broke through the $4,400 resistance level, the former top of wave iv from June, ActionForex says in its latest wave analysis. That level also intersected the 61.8% Fibonacci correction of the downward impulse that ran from May.
The break accelerated the active minor impulse wave iii within the broader impulse wave 3 that began in July. That strength keeps the setup rated a buy.
Gold can be expected to test the next resistance level in the wave count. That level sits at $4,600, the former minor pivot high from the end of May and the target for completion of the active impulse wave iii.
Source: ActionForex
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