Gold (XAU/USD) Elliott Wave Analysis – Potential for Further Upside?
Market Overview
The chart represents a 1-hour timeframe of Gold (XAU/USD) with an Elliott Wave analysis. The price is currently trading around $3,085, showing a strong bullish trend.
Wave Structure Breakdown
The chart highlights a five-wave impulse structure following Elliott Wave Theory.
Wave (1) and (2): The initial push upwards followed by a corrective retracement.
Wave (3): A strong bullish continuation, confirming an extended impulse move.
Wave (4): A consolidation phase forming a bullish flag/pennant, signaling a potential continuation.
Wave (5): The final leg of the impulse wave is currently unfolding, with a projected target around $3,120 - $3,140 (based on measured move projections).
Key Technical Insights
Trendline Support: The price is respecting the ascending channel, reinforcing the bullish momentum.
Measured Move Projection: A 3.12% increase aligns with previous wave projections.
Potential Reversal Zone: If wave (5) completes near $3,120-$3,140, a corrective ABC retracement could follow.
Trading Plan
Bullish Scenario: Traders can consider long positions on pullbacks within the channel, targeting the $3,120-$3,140 resistance zone.
Bearish Scenario: A break below the channel support could indicate the beginning of a corrective move.
Conclusion
Gold remains in a strong uptrend, with wave (5) nearing its completion. Traders should monitor price action near $3,120-$3,140 for potential profit-taking or a trend continuation confirmation.
Market Overview
The chart represents a 1-hour timeframe of Gold (XAU/USD) with an Elliott Wave analysis. The price is currently trading around $3,085, showing a strong bullish trend.
Wave Structure Breakdown
The chart highlights a five-wave impulse structure following Elliott Wave Theory.
Wave (1) and (2): The initial push upwards followed by a corrective retracement.
Wave (3): A strong bullish continuation, confirming an extended impulse move.
Wave (4): A consolidation phase forming a bullish flag/pennant, signaling a potential continuation.
Wave (5): The final leg of the impulse wave is currently unfolding, with a projected target around $3,120 - $3,140 (based on measured move projections).
Key Technical Insights
Trendline Support: The price is respecting the ascending channel, reinforcing the bullish momentum.
Measured Move Projection: A 3.12% increase aligns with previous wave projections.
Potential Reversal Zone: If wave (5) completes near $3,120-$3,140, a corrective ABC retracement could follow.
Trading Plan
Bullish Scenario: Traders can consider long positions on pullbacks within the channel, targeting the $3,120-$3,140 resistance zone.
Bearish Scenario: A break below the channel support could indicate the beginning of a corrective move.
Conclusion
Gold remains in a strong uptrend, with wave (5) nearing its completion. Traders should monitor price action near $3,120-$3,140 for potential profit-taking or a trend continuation confirmation.
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.
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.