The price of gold in the XAU/USD chart has been in an uptrend, forming waves 1, 2, 3, 4, and 5. Currently, we are within the larger wave 5, where three main sub-waves have already formed, and we are now waiting for the formation of the corrective wave 4 within wave 5.
Based on price action and classical patterns, corrective wave 4 may take one of the following forms:
A shallow and quick correction (Zigzag or short Flat) if the bullish trend remains strong.
A deeper correction (Extended Flat or Triangle) if the market requires a longer consolidation phase.
Key Fibonacci retracement levels, such as 38.2% and 50% of wave 3, could act as potential support zones.
Once wave 4 is completed, we expect wave 5 to continue the uptrend, potentially leading to a new high in gold prices. This scenario can be confirmed by analyzing trading volume and technical indicators such as RSI and MACD.
Based on price action and classical patterns, corrective wave 4 may take one of the following forms:
A shallow and quick correction (Zigzag or short Flat) if the bullish trend remains strong.
A deeper correction (Extended Flat or Triangle) if the market requires a longer consolidation phase.
Key Fibonacci retracement levels, such as 38.2% and 50% of wave 3, could act as potential support zones.
Once wave 4 is completed, we expect wave 5 to continue the uptrend, potentially leading to a new high in gold prices. This scenario can be confirmed by analyzing trading volume and technical indicators such as RSI and MACD.
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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.
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.