Gold is making an intraday bottom before a big move upside. Will price rally soon? The following 20 July Gold Elliott wave analysis gives technical clues based on Elliott wave theory.
Gold is currently breaking above the 1230 intraday resistance. Price could go higher in the coming days. In the last update, we had anticipated a rally up to 1270 to complete a 4th wave correction or even change of trend depending on the structure of the expected rally. How far could price go? Let’s review the last update where we used the chart below.
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.
20 July Gold Elliott wave analysis: what next?
Price has completed an inverse head and shoulder and now breaking out of the box. The rally that should follow is expected to be corrective – like zigzag pattern. If price stays above the box, we should expect more upward push toward our bullish target at 1270. If price rallies as expected, we would see if our preferred expectation (corrective 4) or alternative (total bullish recovery) will play out. Stay tuned for the next update.
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