Gold bounce only correction within downtrend: Elliott Wave

Source: Bloomberg Source: Bloomberg

Gold (COMEX:GCG14) turned bearish at the start of September after breaking through the rising trend line of a corrective channel. We knew at the time that it was an important signal for a change in trend, which means that bearish price action is back in play, which also accelerated at the end of December. So, we assume that price is moving down in a larger wave 5) heading through the $1,180 June low. With that said, we think that the current bounce is most likely just another corrective rally in the middle of a bearish trend. Resistance is seen around $1,250-$1,270 from which the new sell-off could occur.

GOLD Daily Elliott Wave Analysis

GOLD four-hour

Gold has reached a new swing high around $1,254 this week from which we can see some bearish price action. At the moment, a decline from $1,254 is definitely still not enough to confirm an end of a three wave (a)-(b)-(c) corrective rally. But further weakness today and tomorrow, back to the $1,216 wave (b) zone will suggests that a new sell-off on gold is in progress.

GOLD four-hour Elliott Wave Analysis

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 He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website:

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