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Analysis

Gold found buyers after Elliott Wave zig zag pattern

In this technical blog we’re going to take a quick look at the Elliott Wave charts of GOLD (XAUUSD), published in members area of the website. As our members know the pair is showing impulsive bullish sequences in the cycle from the 2537.3  low.  Consequently , we were calling for the further rally in the commodity. Recently GOLD made a pull back that has had a form of Elliott Wave Zig Zag pattern.  In the further text we are going to explain the Elliott Wave Pattern and the forecast

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A  or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and  ideal retracements.

At the chart below we can see what Elliott Wave Zig Zag pattern looks like in real market.

Gold H1 London update 11.26.2024

GOLD ended cycle from the 2538  low as 5 waves structure. The commodity has given us pull back against the 2538  low that unfolded as Zig Zag pattern.  Extreme zone has been already reached at 2626.04-2586.8 ( buying zone) We don’t recommend selling the commodity and expect further rally to resume from the marked area.

Gold H1 London update 10.24.2023

The commodity has given us nice reaction from the marked extreme zone. Now, as far as the price holds above 2606  low, we can have correction completed and see the further strength. We need to see break above (1) blue – 11.22 high to confirm next leg up is in progress.

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