On Gold we presented a triangle idea few weeks back, with wave C rally up to 1380/1400 resistance area. Market sold of sharply from that levels two weeks back and it seems that price is ready to continue lower in April as current decline looks impulsive. With that said, we suspect that wave D is now underway to around 1240/1270 zone.
Gold is bearish for two weeks now and very slow beneath 1300 level, so we suspect that market is still in wave (a) and that current sideways price action is red wave iv) as part of a bearish impulse, so we are looking down in fifth for the start of this week. 1270/1280 level could be seen before market turns up for a three wave rally in wave (b). Short-term critical resistance is at 1319.
Elliott Wave Patterns: Triangle Pattern
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.