XAU/USD Elliott Wave Analysis: Potential Bearish Reversal OANDA:XAUUSD PEPPERSTONE:XAUUSD ICMARKETS:XAUUSD
The chart suggests that Gold Spot/U.S. Dollar (XAU/USD) has completed a major correction pattern and is now on the verge of a significant downward move.
Major Correction (A) ➡️ (B):
The price action from the major peak appears to be forming a complex correction, with the current phase completing the major (B) wave.
The sharp drop to the low around November 1st is labeled as a major (A) wave.
The subsequent rally is labeled as the major (B) wave, which is currently subdividing.
Subdivision of Wave (B): The corrective rally (B) is showing signs of completion as a smaller ABC pattern:
o Wave A (of B): A strong 5-wave impulse (labeled 1-2-3-4-5) completed in mid-November.
o Wave B (of B): A correction followed this high.
o Wave C (of B): The current rally is the final leg, Wave C (of B), aiming for the final target.
• Critical Reversal Target for (B) Wave: The chart anticipates the completion of the final Wave C (of B) at a specific price point, coinciding with a key Fibonacci level and trendline resistance:
61.80% Fibonacci Retracement at $4,313.88
This $4,313 zone is the high-probability reversal point before the major downside move begins.
📈 Technical Levels and Trendlines
Major Resistance (The Reversal Zone):
Upper Red Trendline: This descending trendline connects the initial peak with the top of the internal Wave (B), serving as strong dynamic resistance.
Key Price Target: The $4,313.88 level is the projected apex of the rally.
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📉 XAU/USD Elliott Wave Analysis: Potential Bearish Reversal from $4,313
🌊 Wave Count Interpretation (Elliott Wave)
The chart suggests that Gold Spot/U.S. Dollar (XAU/USD) has completed a major correction pattern and is now on the verge of a significant downward move.
Major Correction (A) ➡️ (B): The price action from the major peak appears to be forming a complex correction, with the current phase completing the major (B) wave.
The sharp drop to the low around November 1st is labeled as a major (A) wave.
The subsequent rally is labeled as the major (B) wave, which is currently subdividing.
Subdivision of Wave (B): The corrective rally (B) is showing signs of completion as a smaller ABC pattern:
Wave A (of B): A strong 5-wave impulse (labeled 1-2-3-4-5) completed in mid-November.
Wave B (of B): A correction followed this high.
Wave C (of B): The current rally is the final leg, Wave C (of B), aiming for the final target.
Critical Reversal Target for (B) Wave: The chart anticipates the completion of the final Wave C (of B) at a specific price point, coinciding with a key Fibonacci level and trendline resistance:
61.80% Fibonacci Retracement at $4,313.88
This $4,313 zone is the high-probability reversal point before the major downside move begins.
📈 Technical Levels and Trendlines
Major Resistance (The Reversal Zone):
Upper Red Trendline: This descending trendline connects the initial peak with the top of the internal Wave (B), serving as strong dynamic resistance.
Key Price Target: The $4,313.88 level is the projected apex of the rally.
Major Support (The Target Zone):
Lower Green Trendline: This ascending trendline connects the key lows and represents the potential final target for the upcoming decline.
Target Price Zone: The final target for the major (C) wave is indicated near the $3,826.25 level.
🎯 Trading Strategy Implication
Imminent Move: The price is completing the final internal wave towards the $4,313.88 reversal zone.
Short Entry: The ideal short-entry zone is near the $4,313.88 level, with a tight stop-loss placed just above the upper red trendline to manage risk.
Profit Target: The anticipated sharp decline, labeled as the massive (C) wave, targets the lower green trendline around $3,826.25, offering a substantial risk/reward opportunity.
Disclaimer:
This analysis is for educational purposes only and is based on Elliott Wave Theory and technical indicators. It is not financial advice. Trading foreign exchange, cryptocurrencies, and commodity futures involves significant risk of loss and is not suitable for all investors. Past performance is not indicative of future results.
Always do your own research
