Triangle Pattern Set up XAUUSD (GOLD) For a Potential Rally
Gold (XAUSUD) seems to have completed a contracting triangle corrective pattern in wave (4) as indicated by the wave structure of the sideways price action in September and October and by the converging trendlines that connected the extremes of waves (a), (b), (c), (d) and (e).
According to Elliot Wave Theory, once a correction is completed, the price resumes in the direction of the major trend, which is bullish in this case.
So a potential rally is highly probable in Gold in the weeks ahead, and the projected target is 61.8 Fibonacci extension (blue area) on the chart.
TIP: The best entry guideline for Triangle is to wait for the price to break the extreme of wave (d) of the pattern and then placing the protective stop at the extreme of wave (e).
Best of luck on the chart!
Veejahbee.
According to Elliot Wave Theory, once a correction is completed, the price resumes in the direction of the major trend, which is bullish in this case.
So a potential rally is highly probable in Gold in the weeks ahead, and the projected target is 61.8 Fibonacci extension (blue area) on the chart.
TIP: The best entry guideline for Triangle is to wait for the price to break the extreme of wave (d) of the pattern and then placing the protective stop at the extreme of wave (e).
Best of luck on the chart!
Veejahbee.
