GOLD Elliott Wave
Last Friday Gold was trading in a downward move like we expected; final (C) wave (coloured green) of the bigger wave (4) (coloured orange) is developing. During the European session we could observe descending movement from 1,742.66 towards the 1,730.72 level. Therefore, during the early New York session Gold continued trading in a strong bearish mood and price reached 1,712.98 level. We can consider this move as the end of the corrective wave (4) (coloured orange). At the moment this commodity is trading around 1,721.30 level and we are expecting to see price around 1,823 level in the next few days. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 1,823.39 (100% of wave 1). To reduce the risk, we can use invalidation at 1,713.71 level as Stop Loss.
Support and Resistance
(S3) 1681.5 (S2) 1698.7 (S1) 1710.2 (PP) 1727.4 (R1) 1738.9 (R2) 1756.1 (R3) 1767.6
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,726.37 with Stop Loss 1,713.71 and Take Profit at 1,823.39 are recommended.