Gold Elliott Wave technical analysis
Function - Counter-Trend.
Mode - Corrective.
Structure - Triangle for wave 4.
Position - Wave 4.
Direction - Wave 4 is still in play.
Details - Gold completes a triangle for wave 4. Thus, the commodity favors the upside in wave 5 if it escapes the trappings of the congestion. Invalidation remains at 2287.34.
Gold has been sideways for over 11 weeks after retracing the bullish trend that started in October 2023. Meanwhile, the commodity is expected to break to the upside to continue the trend.
On the daily chart, a bullish impulse wave pattern emerged from September 2022 where the supercycle wave (IV) ended at 1616.9, From there, the supercycle wave (V) began. Wave I of (V) ended in May 2023 at 2081.8 before pulling back in wave II of (V) which ended at 1810.58 in October 2023. From October 2023 at 1810, wave III of (V) began and has since seen the commodity to fresh highs multiple times in the year 2024. Price is currently in wave 4 of (3) of III of (V) which has not completed a triangle pattern typical of 4th waves. Wave 5 of (3) is now expected to emerge upside toward 2576-2749.
On the H4 chart, the sub-waves of wave 4 are in a triangle sideways structure. Alternatively, it could be a double zigzag if the price breaches the triangle invalidation level at 2287.34. However, if the price remains above the invalidation level and breaks outside of the triangle, then we can expect the sub-waves of wave 5 to emerge into either an impulse wave or an ending diagonal pattern.
XAU/USD Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US ADP data
EUR/USD continues to trade in positive territory above 1.0750 in the American session on Wednesday. The data from the US showed that employment in private sector rose less than expected in June, making it difficult for the US Dollar to find demand ahead of FOMC Minutes.
GBP/USD climbs above 1.2700 on USD weakness
GBP/USD preserves its bullish momentum and trades above 1.2700 in the second half of the day on Wednesday. The weaker-than-forecast ADP Employment Change data and the increase seen in weekly Jobless Claims weigh on the USD and allow the pair to stretch higher.
Gold jumps above $2,350 after US data
Gold gathers bullish momentum and trades at its highest level in over a week above $2,350. Following the disappointing ADP Employment Change and Initial Jobless Claims data from the US, the 10-year US yield stretches lower, helping XAU/USD extend its daily rally.
Bitcoin price struggles around $61,000 as German government transfers, miners activity weigh
U.S. spot Bitcoin ETFs registered slight outflows on Tuesday. The German Government transferred another 832.7 BTC, valued at $52 million, on Tuesday.
US markets back on top after Powell's confidence in disinflation
Speaking at the ECB conference on Tuesday, the current Fed’s chief noted that the US is back on a "disinflationary path". Of course, this was followed by caveats that more data is needed to decide on a rate cut.