Gold price has dropped below 1212, aiming 1200 after price continues last week bearish move. What next from Elliott wave perspective?
Gold continues last week bearish move after it dropped below 1212 support level. This bearish breakout might eventually see price off to 1200 handle as the year long bearish trend continues. Gold, which completed the 4th wave of a bearish impulse wave at 1243 might continue downside this month and eventually end the year bearish. The 5th wave might be on the way after price lost all of last week's 250 Pips rally to currently trade close to 1200. If the 5th wave continues as expected, the bearish move might extend till early next year.
Gold Elliott Wave Analysis, Daily
The long term wave analysis is a bit unchanged from last update's. Price is in a long term bullish correction. The long term bullish correction is completing the second leg - a possible flat pattern. The flat pattern is completing the last leg - Wave C (circled) with an impulse wave. Price is expected to drop further below 1160 low and should be held above 1122 to maintain the Flat pattern. This might continue for the rest of the year and early next year. The impulse wave C (circled) completed the 4th wave at 1243, a zigzag pattern. In the last update, a break below 1212 was needed for price to continue the 5th wave.
Gold Elliott wave Analysis: H2
The chart above shows price drops below 1212 but still within the wave (iv) zigzag channel. A break below the channel would see price testing 1180 and eventually 1160 wave (iii) low. A break below the channel is expected to print an impulse wave (iii) as the chart below shows.
Gold Elliott Wave Analysis, 30 Mins
The chart above shows the intraday wave analysis from 1243 showing the possible sub-waves of the 5th wave. Wave i-ii from 1243 to 1212 and up to 1237. The break below 1212 probably confirmed wave iii of 5. Price might drop away from 1212 down below 1200 before retesting 1212 and drops massively. Price currently lies at a strong support level to check if there will be a strong enough bullish force to send it back upside. The long term forecast points downside but the short term trend is still bullish until price drops massively below the wave 4 zigzag channel. Otherwise, a bridge above 1212 might lead to 1237 retest.
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