Gold Elliott Wave
Since our last analyses Gold was trading lower just like we expected, impulsive wave (3) (coloured pink) of the bigger 3 wave (coloured blue) was developing. Yesterday during the Asian and European sessions we could observe strong descending movement from 1,669.58 towards the 1,665.94 level. Therefore, during the New York session this commodity has continued trading lower and the price reached a new low at 1,642.48 level. At the moment the price is testing yesterday’s low and we expect to see little retrace when corrective (4) wave (coloured pink) starts. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the wave 3, we can define the potential targets with measuring wave 3 with take profit at 1,654.40 (38.2% of wave 3). To reduce the risk, we can use support at 1,630.00 level as stop loss.
Support and Resistance
(S3) 1,612.3 (S2) 1,628.2 (S1) 1,638.5 (PP) 1,654.4 (R1) 1,664.7 (R2) 1,680.6 (R3) 1,690.9
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,643.00 with stop loss 1,630.00 and take profit at 1,654.40 are recommended.
