Gold: Are bulls teasing bears? – Ending diagonal scenario

Abhishek H. Singh WaveTalks

Elliott Wave update

Following up from the last update, gold is hovering close to 2355. Are bulls eyeing this level? Indeed, the 2350-2355 zone was a strong demand area, pushing the yellow metal to all the levels mentioned and even surpassing 2425, making a new all-time high at 2522 before dropping back to the 2400 levels on Monday, August 5, 2024.

With the trading week about to end tomorrow, August 9, 2024, are bulls aiming for new or similar highs close to 2500?

Case of ending diagonal

Key Characteristics:

Wave Structure: Consists of five waves, labeled 1-2-3-4-5.
Overlap: Waves 1 and 4 often overlap, which is unusual for impulse waves.
Subdivisions: Each wave within the ending diagonal typically subdivides into three smaller waves (a-b-c).

Current position

Gold is currently in Wave 5 upside and has the potential to touch similar or new highs beyond 2522, holding above the key 2450 level.

Note: Once these 5 waves are completed, a trend reversal can be seen.

Author

Abhishek H. Singh

WaveTalks

Abhishek is a seasoned financial analyst with over a decade of experience specializing in Elliott Wave Theory.

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