Gold Elliott Wave
For the last few days gold was trading downward, impulsive wave 5 (coloured blue) of the bigger (A) wave (coloured green) was developing. During the Friday's European session we could observe strong descending movement from 1,670.90 toward the 1,655.92 level. Therefore, during the New York session this commodity did not manage to hold this level and the price started trading in a sideways move. Today we are expecting one more push lower before we can see strong bullish move when development of the (B) wave starts. In accordance with our wave rules and taking into account that the wave B should retrace 50% of the wave A, we can define the potential targets with measuring wave A with take profit at 1,6730.20 (50% of wave A). To reduce the risk, we can use support at 1,640.00 level as stop loss.
Support and Resistance
(S3) 1,635.1 (S2) 1,645.1 (S1) 1,651.7 (PP) 1,661.7 (R1) 1,668.3 (R2) 1,678.3 (R3) 1,684.9
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,665.12 with stop loss 1,640.00 and take profit at 1,673.20 are recommended.
