Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of GOLD, published in members area of the website. As our members know, GOLD is giving us correction of the cycle from the 2069 high. Recently GOLD ( $XAUUSD ) made a pull back that has had a form of Elliott Wave Zig Zag pattern. We expected GOLD to find buyers at the extreme zone from the 05/24 peak. In the further text we are going to explain the Elliott Wave Pattern and the forecast
Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.
Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
At the chart below we can see what Elliott Wave Zig Zag pattern looks like in real market.
GOLD is giving us pull back against the 1786.4 low. Recovery has already reached the extremes from the peak at 1833.8-1814.9 area and we expect to complete X red soon. We assume pull back is unfolding as Elliott Wave Zig Zag Pattern. That means both A and C leg has to have a form of 5 waves structure. We can count clear 5 waves down in A red leg. We are calling for another marginal push lower within the marked reversal area. Anyway, we don’t recommend selling. We are aware that extreme zone is already reached and minimum number of swings is already there, turn can happen any moment.
Reminder : You can learn more about Zig Zag and other Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
GOLD has started giving us reaction from the marked zone and we count X red connector completed at 1827.7 low. Now, we need to see further separation up from the mentioned level and break above W red high : 05/24 to confirm next leg up is in progress.
We got further separation higher and break of 05/24 peak, confirming next leg up is in progress. GOLD can remain supported in near term as far as 1828.04 pivot holds.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent updates in the membership area of the website. Remember that not every chart is trading recommendation. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
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