Gold (COMEX:GCV13) broke to a new high on Friday as expected after recent sideways price action above $1,350 area, which was a fourth wave so now market is in wave five, final leg of an impulsive move. That means that reversal in price may follow this week. Why? Because as Elliott Wave theory says, after every five waves, a correction will follow. In fact, $1,400 is also a very important and strong resistance area so a turning point or new consolidation should not be a surprise. If current trend will extend higher within wave (v) then next resistance zone is at $1,420.
GOLD 4h – Elliott Wave Analysis
Elliott Wave Basic Pattern