2024-06-27 XAUUSD Drifting Sideways Till The End of Summer

Updated

Elliott Wave analysis presents another possibility for the medium term: we can be in complex correction for next 2 months printing WXYZ all the time.
Bulls and bears will be strongly disappointed in this scenario.
this scenario is very bullish. Once the correction ends, we can expect upside breakout.

Comment

There is also a psychological explanation about the price action that will take place in next months:
1. vast majority of investors are bullish gold
2. most are already long but some that are not, who missed the rally, don't want to buy high. Those investors will buy any dip and will hold price against a large fall
3. As most investors are already long there is not enough additional money to push the price up, hence any rally will fall short and fail.
4. This situation will continue for several weeks and months and will frustrate bulls and bears.
5. When the price finally breaks out and reach a target most investors will be so exhausted (remember, they were promised astronomical rally to 10000) with the multi-month wait that they will sell at a first target (2500). (At the end of year 2024)
6. This will result in sharp correction that will spook rest of the bull crowd and will wake up the bears. (Year 2025)
7. Big money bears would like to establish shorts at that point but not at a discount.
8. They will drive price above prev highs (2600). The rest of the bulls will be relieved and will sell out of longs. This, along strong bears establishing their positions will result in new downtrend correction that will dominate the market. (Starting in year 2025)

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