Gold has been making an impulsive advance since August 2018.
According to Elliot Wave Theory, a five-wave move is known as an impulsive wave and sets the direction of the major trend.
Gold seems to have completed wave 4 corrective pattern, as the correction terminated at upper boundary channel that connects wave 1-2 extends to the high of wave 1. The level also lined up with 38.2 Fibonacci retracement of wave 3 advance.
Breaking down to lower timeframe:
The price made a five-wave impulse in wave (i) from the 1446.07 area, and subsequent corrective move is an a-b-c expanded flat pattern in wave (ii). The correction also terminated at critical support circa comprising of 61.8 Fibonacci retracement, 1.236 extension of wave a of flat, and wave c support trendline.
If this count is correct, Gold should resume higher from or near the current level, the breach of 1473.08 will confirm that wave (ii) has really bottomed. And if price trade below the invalidation level on the chart, I will need to review the analysis.
What's your thought about Gold? Kindly let me know in the comment.
Thanks,
Veejahbee.
According to Elliot Wave Theory, a five-wave move is known as an impulsive wave and sets the direction of the major trend.
Gold seems to have completed wave 4 corrective pattern, as the correction terminated at upper boundary channel that connects wave 1-2 extends to the high of wave 1. The level also lined up with 38.2 Fibonacci retracement of wave 3 advance.
Breaking down to lower timeframe:
What's your thought about Gold? Kindly let me know in the comment.
Thanks,
Veejahbee.
Comment:
I have reviewed the hourly chart corrective pattern and update it accordingly.
