Gold into A Corrective Pause; 1860/1800 Support in View – Elliott wave analysis
Gold may have completed a higher degree wave III), and its five-wave cycle at latest 2073 highs. We now see a complex W-X-Y move unfolding within a higher degree wave IV) correction, with possible support at the 1863/1800 level, where swing low, and equality levels of waves W and Y comes in play.
If price starts to unfold sideways, then a triangle can still be possible within a wave IV).
On the 4h chart of gold, we have a better look of the corrective price move being made, down from 2074 high. We see completed three legs within a wave W, followed by a three-wave recovery into a wave X, which found resistance recently at the 2015 level, and started dropping in impulsive price fashion. That said, wave Y can be underway with a three-legged move, so be aware of further decline towards the 1860/1800 level, once minor leg B correction fully forms.
Support for corrective wave IV) of a higher degree is at 1860/1800 zone.
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