Gold has continued upside after breaking above 1300 price level. Will it surge further? The following looks at what could happen next based on Elliott wave theory.
January 30, 2019 | AtoZ Markets - Prior to the current bullish push, Gold spent most days in January on the downside. The dip however, looked corrective and it was normal to expect that the bullish trend would continue far above 1300 to 1360-1370. On 21st January, the dip continued to test 1277. Price was supported as the bulls took it back to 1286 intraday resistance. A break above 1285-1286 resistance zone was expected to cause a big up-spike above 1300 and thereby concluding the bearish correction from 1298 which was the 4th sub-wave of the 3rd wave of the bullish impulse wave from 1160 (that started in August 2018).
In the last update, we expected the intraday dip from 1285-86 to continue to 1272-1275 before the bullish trend resumed. It was also noted that a break above 1285-86 zone would all but confirm price's commitment to the bullish trend. The chart below was used.
An alternative bullish confirmation as stated in the last update was that ''a break above wave (2)-(4) falling line would confirm a new wave of bullish run which might extend to 1360-1370''. What happened afterwards? Price dropped but couldn't hit 1272-75 reversal zone before a fast break above wave (2)-(4) bearish red trendline happened. Price broke above 1285 and has continued upside gaining more than 370 Pips. The chart below shows the new update.
Gold Elliott Wave Analysis and Important Price Levels
From 1277, a new bullish impulse wave is about to complete the 3rd wave of the rally from 1160. However, at this point, a minor 4th wave dip could happen to 1300-1305 before price advances further to complete wave (iii) after which a bigger dip will be expected. The larger picture suggests price of Gold would gain further to 1360-70 in the coming weeks. The trend is still bullish.
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