Gold Elliott Wave technical analysis [Video]

Peter Mathers TradingLounge

Gold Elliott Wave analysis

Gold has been on a remarkable upward trajectory, gaining over 22% in 2024 so far. The precious metal is on the verge of reaching another high within just over a week, signaling strong momentum in its ongoing rally. From a technical perspective, the price action suggests that Gold is primed for a significant breakout after remaining range-bound over the past week. This potential move could propel Gold to new heights, further solidifying its bullish outlook.

Daily chart analysis

On the daily chart, Gold has recently completed the supercycle wave (IV), a corrective wave in the long-term bullish trend that commenced in December 2015. The completion of this wave (IV) has set the stage for the initiation of a new impulse wave, identified as wave (V). This wave (V) is part of a larger Elliott Wave structure that is expected to carry Gold to substantially higher levels.

Within wave (V), the first two sub-waves, waves I and II, were completed in May and October 2023, respectively. Currently, Gold is advancing in wave (3) of III (circled), a critical segment of the overall wave structure. Wave (3) of III is typically the most powerful and extended wave in an Elliott Wave sequence, and this current move is no exception. The ongoing wave (3) of III has the potential to drive Gold beyond the 2600 level before it culminates.

The consolidation phase observed between April 12th and June 26th aligns with wave 4 of (3), a corrective phase that allowed the market to digest previous gains. Now, Gold is in wave 5 of (3), which is expected to push the price past prior highs and establish new records, reinforcing the strong bullish sentiment that has dominated the market.

Four-hour chart analysis

Zooming in on the H4 chart, Gold is currently in wave iii (circled) of 5, within the larger wave (3) of III. The price has been trading within a one-week triangle range, which is identified as wave (iv) of iii (circled). This pattern is a classic Elliott Wave setup that often precedes a strong breakout. A decisive break to the upside is anticipated, leading to the completion of wave (v) of iii (circled), with targets in the 2550-2600 range in the near term. This breakout would mark another significant milestone in Gold's ongoing rally, as it continues to climb towards new heights. The overall bullish outlook remains robust, supported by strong technical factors.

Gold Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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