Gold looks bearish beneath $1,362: Elliott Wave

Gold (COMEX:GCZ13) reversed sharply to the downside at the start of September through the rising trend line of a corrective channel. That's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside in the next few weeks if we consider possibly completed flat correction in wave 2 around $1,360. A fall and daily close beneath $1,270/$1,250 region will be important sing for a wave 3 down in progress back to $1,180.

GOLD 4h – Wave (i) Near Completion

Gold has sold off very sharply in this week so we adjusted the wave count that shows a fifth leg down now, final leg in wave (i) from $1,361 peak. If we are correct then price will bottom around $1,360, at 161.8% extension level of wave i) measured from wave ii) high.

Elliott Wave Education : Flat correction

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Running Flat

• structure is 3-3-5
• wave B terminates well beyond the beginning of wave A as in an expanded flat
• wave C fails to travel its full distance, falling short of the level at which wave A ended
• appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

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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