Gold dropped below 1220 earlier today but a fast bullish resurgence has ignited bullish hopes. The following 19 July Gold Elliott wave analysis gives useful technical insights based on Elliott wave theory.
The Dollar has been the major trigger for Gold this week. Today, a bullish Dollar saw Gold declined below 1220 technical support level. A quick Dollar fall later saw Gold recovered swiftly back above the 1220 support level. Right now, it looks as if price is painting a bullish reversal picture. In the last update, we spotted an emerging impulse wave with wave 3 expected to end at 1220 before a move upside. A reversal signal was much required. With the late Gold bullish spike, are we getting something important? The chart below was used in the last update.
Price could be supported at 1220. It will require at least a bullish push above 1230 to start the bullish journey. If price breaks above the upper wedge line, we should see it extend to at least 1266. The speed of move and the pattern up to 1266 would determine which of our two scenarios will hold. In as much as price stays within the wedge, a new low could happen.
19 July Gold Elliott wave analysis: what next?
Price has rallied back to 1230 after a fast drop to 1211. The bottom might complete an ‘inverse head and shoulder’ which is a reversal pattern. Upward breakout of the box above (above 1230) would be an early confirmation of the expected rally. A break above the resistance line (above 1235) of the wedge would be a late confirmation. The rally would be expected at 1370 at least. Stay tuned for the next update.
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