Gold broke above $1300 mark first time in three months after completing an important chart price pattern mid-December 2017. Will the rally continue to $1400 soon? The 4 January Gold price Elliott wave analysis below shows what could happen next.
04 January, AtoZForex – Gold price bottomed at 1235 in December 2017 after it completed a zigzag pattern on the H4 chart. The bearish corrective pattern started early September and lasted more than 14 weeks. Since the correction completed, price has rallied more than 6.8% to break above $1300 mark. This is the first in three months. What likelihood is it that price will advance further to $1400 bullish target?
For many months, I have been talking about some levels which are significant for the medium-term price direction. For instance, before price bottomed at 1235, we already highlighted 1230 and 1200 as reversal prices to watch out for. In an intraday update on 13 December I wrote about price returning upside at 1236. It did exactly and never looked back.
In the last update, when price hit 1280 important level, I had two scenarios . I have also been discussing about this level. I believed it was so important for bullish control. Until price broke above 1280, the bears still had a chance. In the last update, I used the chart below.
The first scenario expected price to break above 1280 and the second expected price to be held below 1280. The first scenario played out eventually. Price broke above 1280 and then 1300 thus re-establishing the bullish long term trend. The chart below shows the wave analysis of the rally from the bottom.
4 January Gold price Elliott wave analysis: what next?
The rally is expected to continue to 1330-1350. A bearish correction could happen from this zone back to $1280-$1300. The rally should continue afterward. The bullish trend has been re-established and it will take a very strong bearish force to change this status. In the coming weeks/months, price is expected to head toward 1500. Stay tuned for the next update.
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