Gold has completed a correction of the bullish move at 1222. It now requires a breakout to hit 1240 or higher. The following looks at the Elliott wave forecast of XAUUSD.
November 2018 | AtoZMarkets - Gold might continue upside for the rest of the week. The bullish move which quickly caused a 2.1% gain in just two days slumped to 1222 early this week. Today, price has recovered and might soon breakout to hit a fresh two weeks high. From Elliott wave perspective, price might have completed the 4th wave of the year-long bearish impulse wave at 1243 last month. The current rally, however, is looking too high and will call for an alternative look if it leads to a break above 1243. If price stays below 1243, the 5th wave could continue below 1200.
Gold Elliott Wave Analysis and Important Price Levels
The chart below shows two possible scenarios. The first scenario follows the recent updates where the 4th wave of the year long bearish impulse wave ended at 1243 with an ending diagonal pattern. Price dip from 1243 to 1211 was expected to be the 1st sub-wave of the expected 5th wave. The rally from 1211 up to the current price could be part of the 2nd sub-wave. Price drop from 1237 to 1222 is corrective and a break above 1237 is expected to follow. However, the upside move should be limited below 1243 to complete the 2nd sub-wave. The 3rd sub-wave would be expected to drop far below 1200. If price breaks above 1243, we might say the 4th wave continues above 1243 and the other scenario would work out.
The second scenario counts a bullish impulse wave from 1211. This scenario would hold at the in place of the one discussed earlier once price breaks above 1243 top. The next target upside are 1248 and 1264 which are important Fibonacci projected levels.
Which of these scenarios do you think is more likely? Please share with us in the comment box below.