FX.co ★ XAU/USD, GOLD

Hello traders, Yesterday, gold significantly "shook off" the bulls, managing to drop more than $400 during the Asian session, despite being heavily oversold according to the RSI indicator on the H4 timeframe. This once again proves that indicators reflect the premise of an asset's development in a distant perspective, but in no way determine its immediate future. As for the current wave structure of gold on the H4 chart, after studying the internal structure of the formation presented on the chart, I see only one scenario for classifying it as a "ABC" flat pattern, possibly even elongated. This conclusion is primarily based on the internal structure of its "A" and "B" waves, which are triple and double zigzags, respectively. Therefore, its "C" wave will potentially be an impulse wave. At the moment, the internal structure of the stretched 3rd wave is forming, specifically its 4th corrective sub-wave, as part of the daily wave "C" of the mentioned flat pattern. So, the recent extreme low of gold at the level of 4098 is not yet the limit for the near-term development perspective, in my subjective opinion.