THE OVERSHOOT COULD BE JUSTIFIED, AS GOLD IS SERVING AS A NATURAL HEDGE AGAINST THE OVERHEATED EQUITY MARKET.
The symmetrical triangle pattern achieved its target with the recent peak price. Nonetheless, the prevailing conditions in the equity markets could potentially lead to an overshoot to $2 280 as gold as seen as a natural hedge.
A retracement to the symmetrical triangle pattern breakout level, approximately at $2040, would be considered justifiable and viewed as a healthy correction, labelled as wave w.
A second attempt towards $2 220 appears reasonable, acting as a corrective second wave, labelled as wave y.
A retracement and correction back to wave y (the long-term support trendline) appears plausible and will be perceived as an additional accumulation price level.
TARGET AND RE-ASSESSMENT LEVELS:
Pivotal levels: 22220 and 2040
Primary trend: Overlapping gains to 2220
Prevailing trend: Gains off 2280 back to 1970
Technical rating: Medium
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