Gold bearish trend that started early this year is set to continue. The following 30 July Gold Elliott wave analysis looks at XAUUSD technical forecast based on Elliott wave theory.
Gold rejected the 1235 intraday resistance level last week and dropped to break below a corrective channel. In the last update, we looked at the wave formation of the decline that started in the 1st quarter of the year. The drop is emerging into an impulse wave. We identified the current drop as part of the wave iii of 3. This meant that price should decline further. Before we look at today’s update, let’s review the last update where we used the chart below.
The chart above shows the impulse wave since the beginning of the year and shows that the rally we looked at is part of the 3rd wave. Wave i of (iii) may be extended. Wave v of (iii) could end at 1200 before wave (iv) rally. We will still see more pullbacks but the bearish trend is still much intact and strong. If price moves like the forecast above shows, we might see it at 1150 before the big bullish correction. Future updates will look more at the intraday waves.
In today’s update, we will look closer at the intraday wave degree and an opportunity to sell into the next bearish leg. What next?
30 July Gold Elliott wave analysis: what next?
The chart above shows wave iv ending at 1235 and price dropped below the channel. We might have a 3-wave rally up to 1230 before the bearish move continues. Unless it breaks above 1235, price will much likely drop further – below 1211 and hit the 1200 handle on its way to complete wave (iii). Stay tuned for the next update.
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