Gold Elliott Wave
For the last few days Gold was trading in a sideways move, corrective (B) wave (coloured green) of the bigger (y) wave (coloured red) was developing. Yesterday, during the European session we could observe strong descending movement from 1,685.08 toward the 1,666.54 level and we can consider this move as the end of the impulsive wave 1 (coloured blue) of the bigger (C) wave (coloured green). Therefore, during the New York session this commodity did not manage to hold this level and price retrace back to 1,674.93 level where wave 2 (coloured blue) ended. At the moment gold is trading around 1,670 level and we are expecting to see price below 1,645.00 level soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,644.79 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1,685.25 level as stop loss.
Support and Resistance
(S3) 1645.3 (S2) 1656.3 (S1) 1665.1 (PP) 1676.1 (R1) 1684.9 (R2) 1695.9 (R3) 1704.7
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1,668.00 with stop loss 1,685.25 and take profit at 1,644.79 are recommended.
