Gold Elliott Wave
Last week Gold was trading sideways, corrective wave (C) (coloured green) of the bigger (Y) wave (coloured red) was developing. During the Friday's European session we could observe ascending movement from 1,665.00 towards the 1,673.47 level and we can consider this move as the end of the sub-wave (2) (coloured pink) of the impulsive 3 wave (coloured blue). Therefore, during the early New York session this commodity pair did not manage to hold this level and the price started pushing lower reaching 1,667.15 level. Today Gold is trading around 1,667.25 level and we expect to see the price below 1,650.00 level soon. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,641.16 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1,683.34 level as stop loss.
Support and Resistance
(S3) 1,655.2 (S2) 1,660.5 (S1) 1,663.7 (PP) 1,669.0 (R1) 1,672.2 (R2) 1,677.5 (R3) 1,680.7
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1,665.00 with stop loss 1,683.34 and take profit at 1,641.16 are recommended.
