Gold is lacking the required bullish momentum to break upside as price dropped below 1230. The following 24 July Gold Elliott wave analysis looks at what could happen next.
The price of Gold dropped to 1220 in the London session today. It closed above 1230 last week after a fast move from 1211. This week, price was expected to continue the bullish move but it has faltered instead. In the last update, we expected the price of this commodity to advance further after it broke out of the reversal box up to 1230. The chart below was used in the last update.
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.
24 July Gold Elliott wave analysis: what next?
The drop back to the reversal zone (box) is deep and sharp but we have seen a small bullish sign with a minor bounce from 1215. If the bounce results in a break above 1235, price will make its way to 1250 at least. A dip below 1210 will lead to the continuation of the bearish run. At the moment, the original forecast we had is still valid but can easily be invalidated unless a breakout happens soon. Stay tuned for the next update.
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