Elliott Wave Analysis: GOLD Regaining Its Bullish Momentum
Gold bounced sharply this month from 1204 area where we see a completed corrective wave II/B, which can be labeled as a flat or even as a W-X-Y, but in both cases it was a complex correction within uptrend that is now ready to continue. We see current leg up impulsive on lower time frames so it appears that metal is underway to new highs of the year up to 1330-1345 minimum upward projections, but it may go much higher if we consider the wave structure on a weekly chart.
On the lower time frames, gold turned lower after we recognized a top of a five wave move at 1316, this leg down was labeled as wave A. This wave was first of a three wave decline which is now already visible on the charts following recent fall to 1260 area, close to 50% Fib. support. As such, new bullish continuation can be in the cards soon, but we will need an impulsive reaction back above 1280 before new leg back to 1316 can be confirmed.
Find more: Contributing Authors