GOLD Elliott Wave
Since our last analysis Gold was trading in a downward movement like we expected, corrective C wave (coloured blue) of the bigger wave (2) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1,727.40 toward the 1,715.45 level. Therefore, during the New York session this commodity continued trading in a bearish mood and the price reached a new daily low at 1,704.50 level. We can consider this move as the end of the corrective (2) wave (coloured green). At the moment Gold is trading around 1711.40 level and we are expecting to see the price around 1,800.00 level in the short time. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,811.99 (161.8% of wave 1). To reduce the risk, we can use support at 1,704.50 level as stop loss.

Support and Resistance
(S3) 1,681.2 (S2) 1,692.8 (S1) 1,704.6 (PP) 1,716.2 (R1) 1,728.0 (R2) 1,739.6 (R3) 1,751.4

Trading Forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,720.00 with stop loss 1,704.50 and take profit at 1,8011.99 are recommended.