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Gold Elliott Wave
Yesterday gold was trading upwards just like we expected, corrective wave (4) (coloured pink) of the bigger 3 wave (coloured blue) has finished its development. During the Asian and European sessions we could observe an ascending movement from 1,639.05 towards 1,650.35 level. Therefore, during the New York session this commodity has continued trading higher and the price reached 1,653.44 level where we think the corrective (4) wave (coloured pink) ends. At the moment gold is trading around 1,646.88 level and we are expecting to see lower today. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,633.49 (100% of wave 1). To reduce the risk, we can use invalidation at 1,663.03 level as stop loss.
Support and Resistance
(S3) 1628.6 (S2) 1634.1 (S1) 1642.9 (PP) 1648.4 (R1) 1657.2 (R2) 1662.7 (R3) 1671.5
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1,645.00 with stop loss 1,663.03 and take profit at 1,633.49 are recommended.
