FX.co ★ XAU/USD, GOLD

Hello traders, Visually, the ascending double zigzag "wxy" as the 4th corrective wave on the gold H4 chart appears to be complete. Its quotes have currently hit the middle line of the MA100. At the same time, there is an overbought condition of the metal. However, there is a possibility of the gold quotes aiming for the higher positioned MA200 middle line. What is concerning in this situation is the incredibly deep correction as the 4th corrective wave after the previous sharp and extended 3rd wave. The magnitude of this correction is between 50 - 61.8% in relation to the length of the 3rd wave. Such deep corrections are usually atypical for impulse structures with an elongated 3rd wave. Therefore, I assume that we are dealing with a non-impulse structure as wave "C" of the daily flat "ABC", with an expanded ending diagonal. If this is the case, then the metal quotes will continue to show growth, possibly reaching the upper boundary of the current ascending channel, which automatically implies entering the price area of the 1st wave (above the level of 4996). Naturally, this will require a review of the existing wave labeling of wave "C".