Gold Elliott Wave
Since our last update gold was trading downwards, which slightly misses our forecasts but our primary targets are still in play. Yesterday, during the Asian and European sessions, we could observe a descending movement from 1,653.44 towards the 1,640.31 level. Therefore, during the New York session, this commodity has started pushing lower and the price reached a new session high at 1,646.15 level. Today we can see that gold is trading around 1,643.20 level and we are expecting to see continuation of the bearish movement until we can count all five sub-waves of the impulsive 3 wave (coloured blue). 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 1,653.53 (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) 1622.8 (S2) 1631.7 (S1) 1637.3 (PP) 1646.2 (R1) 1651.8 (R2) 1660.7 (R3) 1666.3
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,634.27 with stop loss 1,630.00 and take profit at 1,653.53 are recommended.
