Gold Elliott Wave technical analysis
Function - Counter-Trend
Mode - Corrective
Structure - Triangle for wave 4
Position -Wave 5
Direction - Wave 5 is still in play
Details - Gold broke out of the triangle to confirm the end of wave 4. Prices are now expected to rally in wave 5. It appears the price is in wave iii (circled) of 5 which could extend to 2500 and above.
Gold has made a decisive breakout from its over 2-month consolidation range by moving higher in early July 2024. This breakout signifies a continuation of the bullish trend initiated in September 2022. In the near term, a pullback is likely before Gold resumes its ascent to reach new all-time highs.
Examining the daily chart, we see that the supercycle wave (IV) of the long-term bullish trend, which began in December 2015, has been completed. Following this, Gold embarked on a new impulse wave (V). Within wave (V), waves I and II were completed in May and October 2023, respectively. Gold is currently in wave (3) of III, which has the potential to extend beyond 2500 before it concludes. The recent over 2-month sideways movement represents wave 4 of (3). The current upward movement is part of wave 5 (3), expected to break through to new all-time highs. Consequently, the bullish potential for Gold remains robust. This provides an opportunity for buyers to enter new positions on pullbacks.
On the H4 chart, we can observe the sub-waves of wave 5 of (3) as they unfold. It appears that Gold has completed the first two sub-waves, waves i and ii (circled), and is currently advancing in wave iii (circled). As long as Gold trades above 2293 in the near term, the bullish outlook remains intact, and buyers are likely to continue buying on dips.
The analysis indicates that Gold's bullish momentum is set to continue, driven by the completion of key wave structures and the potential for new highs. Traders should monitor the price action closely, particularly during pullbacks, to identify optimal entry points for long positions. As the market progresses, it will be essential to watch for the completion of wave iii (circled) and subsequent sub-waves to confirm the ongoing bullish trend. With careful analysis and strategic positioning, traders can capitalize on Gold's upward trajectory in the coming months.
Gold Elliott Wave technical analysis [Video]
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