Gold has reached a tradeable bottom
Gold has reached a low of nearly $1900 today. This is an important low as two different Elliott Wave patterns we are following suggest a strong rally is about to develop.
1. B-wave triangle of a larger zigzag
First, today's low may be wave (b) of a triangle pattern (black labels). Therefore, wave (c) will be a rally that carries up to about $1975. After some more sideways slop, this bearish triangle would end and another strong sell off would begin taking gold below $1900 (later in July).
2. Bearish Zigzag Ended
Today's low may be the end of a bearish zigzag that started at the May high. A zigzag pattern takes the form of ((a))-((b))-((c)). Wave ((c)) would be an ending diagonal (red labels). Under this pattern, a swift rally would carry up to $2,000 and possibly higher.
The RSI divergence at today's low suggests bearish momentum has slowed and a rally is about to begin.
1. B-wave triangle of a larger zigzag
First, today's low may be wave (b) of a triangle pattern (black labels). Therefore, wave (c) will be a rally that carries up to about $1975. After some more sideways slop, this bearish triangle would end and another strong sell off would begin taking gold below $1900 (later in July).
2. Bearish Zigzag Ended
Today's low may be the end of a bearish zigzag that started at the May high. A zigzag pattern takes the form of ((a))-((b))-((c)). Wave ((c)) would be an ending diagonal (red labels). Under this pattern, a swift rally would carry up to $2,000 and possibly higher.
The RSI divergence at today's low suggests bearish momentum has slowed and a rally is about to begin.
Trade closed: target reached
Monday's high reached the target and the risk is elevated for Gold to fall back below $1900.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Are you ready to learn Elliott Wave? Take our Free Elliott Wave Readiness Assessment: bit.ly/EWreadinessquiz2
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.