Idea for Gold @2024/12/05

Key Observations:

Elliott Wave Count:
The chart is labeled with Elliott Wave counts, including primary (i, ii, iii, iv, v) and corrective waves (a, b, c).
It suggests that a five-wave impulse structure (upward trend) has been completed, followed by a corrective wave sequence (A-B-C).

Corrective Structure:
The ongoing correction seems to be forming a zigzag (A-B-C).
Wave (a) is downward, wave (b) retraces upwards, and wave (c) is expected to continue downward, possibly breaking support levels.

Channels:
The price action is within a parallel upward channel. This channel might represent the larger trend boundary, with corrective waves testing the lower channel boundary.

Moving Average:
A moving average (likely the 50-period) is plotted and appears to act as dynamic support/resistance. The price is currently below it, indicating bearish momentum.

Support and Resistance Levels:
Key support levels are marked at approximately $2,484, $2,363, and $2,320.
Resistance is visible at the wave (b) high near $2,680.

Projection:
The projection for wave (c) suggests a potential decline toward the lower boundary of the channel, aligning with the Fibonacci retracement levels or significant support zones.

Analysis:
Short-Term Bearish: The corrective wave (c) is likely to extend downward, aiming for support near $2,484–$2,363.

Mid-to-Long-Term Bullish: As this is a corrective phase within an upward trend, the longer-term perspective might favor resumption of the bullish trend after wave (c) completes.

Key Trading Considerations:
Watch for wave (c) completion near support levels for a potential reversal and long entry.
A break below the channel’s lower boundary could signal a deeper correction.
Monitor price action and volume near the 50-period moving average for shifts in momentum.

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