Gold XAUUSD Last Fall Ahead of Christmas Rally?
The gold price was about to finish the initial leg down (grey "ab" part) within a last bigger move to the downside. According to the chart plan of this difficult correction, I expected the farther reversal to the upside, which indeed took place as gold bounced back up from the $1445 low to the top at $1487 as price retraced the half of the "ab" part.
At first glance, it is obvious that the "bc" part of a meager consolidation also flattened in two legs. But I guess various sellers at the top of the initial leg up were trapped and forced to quit with a loss during the second leg up as it defeated the earlier top of $1483 to reach the $1487.
Now, after the "AB" and "BC" moves published, we can reset our target to the downside as we got both distance and the starting point for the "CD" part. But let's not forget about modifying the time target as well. The "ab" part took 7 bars to display, and if we add it to the "c" point, then the time target falls on the 24th of December.
At first glance, it is obvious that the "bc" part of a meager consolidation also flattened in two legs. But I guess various sellers at the top of the initial leg up were trapped and forced to quit with a loss during the second leg up as it defeated the earlier top of $1483 to reach the $1487.
Now, after the "AB" and "BC" moves published, we can reset our target to the downside as we got both distance and the starting point for the "CD" part. But let's not forget about modifying the time target as well. The "ab" part took 7 bars to display, and if we add it to the "c" point, then the time target falls on the 24th of December.