Gold could see corrective Elliott Wave retracement

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

 

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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