Bigger Triangle on Gold Coming to an End And Looking Lower
Gold is seen trading in a big sideways price action known as a Elliott wave triangle correction. A triangle is a complex pattern with five legs, with each leg having three more sub-waves. That said, in our case we see price ending wave D) of a correction, meaning a three-wave rally into wave E) can be just around the corner.
Gold, Daily
Below we now have a 4h view of gold, where we see a potential low in place for higer degree wave D). A suggestion for a low in place and for wave E) to be in progress is an impulsive rally that showed up, away from 1236 level. This rally can now be labeled as sub-wave A as part of leg E). Resistance for corrective leg E) can later be seen around the former swing high- at 1289 level, where bulls can slow down and more weakness can follow.
Gold, 4h
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
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