Gold, strong support coming in
Hello everyone,
after the election in the US Gold started a sharp pullback and lost 9% within 2 weeks.
Now the price reached very strong support zones, built from former consolidations. These zones also match with order blocs on the weekly, 4H and 1H time frame (not shown on the chart).
The RSI is highly oversold and the drop was the biggest one this year. All in all I think it's time for a correction at least.
According to the Elliot wave theory we finished three waves down, the C wave was formed by a five wave move which is very common on five waves. If you are interested in the micro count, let me know in the comments.
The orange area shows the potential resistance for the larger B wave. The green support zone should ideally hold to keep the bullish trend alive and the upper zone shows the fifth wave targets. The price could easily extend to 3000 dollar before a major correction should come.
after the election in the US Gold started a sharp pullback and lost 9% within 2 weeks.
Now the price reached very strong support zones, built from former consolidations. These zones also match with order blocs on the weekly, 4H and 1H time frame (not shown on the chart).
The RSI is highly oversold and the drop was the biggest one this year. All in all I think it's time for a correction at least.
According to the Elliot wave theory we finished three waves down, the C wave was formed by a five wave move which is very common on five waves. If you are interested in the micro count, let me know in the comments.
The orange area shows the potential resistance for the larger B wave. The green support zone should ideally hold to keep the bullish trend alive and the upper zone shows the fifth wave targets. The price could easily extend to 3000 dollar before a major correction should come.
Note
It's possible to set another low first, before the pullback starts. 2500-2530 is a very strong support zone.Note
The pullback has started, already 1,33% spot profitNote
Note
As you can see on the picture above, we are close to complete five waves in the smallest wave degree. This lines up well with the unchanged B wave resistance area (orange). At this point I would suggest profit taking. There is a good chance to form another 4-5 pattern as shown in the higher wave degree. This could bring the price back to 2700 dollar.
To make this clear, 2660-2700 is a crucial resistance area. If we get a break above, we are likely in the next wave of the bullish trend. If we get rejected a B wave could have been completed and a test of last week low is possible again.
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