Gold Elliott Wave Analysis: Price Hits 11 Weeks High After Massive Breakout

Gold has hit a multi-week high after a massive bullish breakout early in the London session. Price has broken away from 1233 as the bullish force keeps knocking.

October 2018 | AtoZMarkets – Gold has been in a range move for almost a week after the 10 weeks range bullish breakout that happened in the week before. It is currently testing 1233- 1-week range top. After the breakout, price is expected at the 12238-1240 before 1245-1250 if the upside pressure persists. In the last few updates, the current rally was labelled as the last leg of the 4th wave of the year-long bearish impulse wave. If this happens to be true, Gold could still end the year in the red as the 5th wave downside will look to take below 1200 and 1140. In the meantime, the focus will be on the current bullish move.

In the last update, we looked at the upside and downside possibilities – to see if the 4th wave has ended or would continue. The preference was upside especially if price broke above 1231. That has happened early today. Gold price has advanced above 1231 and even taking 1233 top out. The current price surge has taken Gold to its highest price since late July. The chart below shows the continuation of yesterday's preferred forecast which has been validated by price.

Gold Elliott Wave Analysis and Important Price Levels

The wave analysis above shows the end of wave iv of V of C of the 4th wave ended at 1218 and wave v continues after breaking above 1231. Unless a fast fall below 1218 happens, Gold is still bullish and will continue so until the end of wave v. The first bullish target zone is 1238 to 1240 and the second target zone is 1245-1250.

Do you think the trend will continue as the forecast above shows? Please share your thoughts with us in the comment box below.

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