Elliott Wave Analysis: Long-term View on Gold Is Pointing

Gold is trading higher, probably at the start of a higher degree impulse in wave C) or III). If that is the case, then the correction in wave B) or II) found a base at the 78.6 Fibonacci ratio. A decisive break above the 1241.18 level would suggest higher levels to follow. That said, now we see the price trading at the start of wave II.

GOLD, Daily

On the 4h chart of Gold, we can see that the metal made a strong reversal last week, below the trendline from the end of January, after touching the upper resistance line on Monday. Well, we see a wedge pattern since the start of the year which can be a leading diagonal placed in wave I position. We know that’s still an important structure for a change in trend, so despite a new look we will remain bullish. However, before bulls may resume we must be aware of a three-wave retracement, ideally back to 1210/1215 area where the metal can be looking for a new support.

GOLD, 4H

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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