Down days for gold

Elliott Wave Outlook for gold and crude


Crude oil (NYMEX:CLQ14) fell to a new low at the start of the week, slightly beneath 100 psychological level before market turned up again.

This rally was expected because of a completed five wave decline, but now recovery is already at 61.8% compared to previous fall which means that new turning point can be again very close. Ideally a sharp recovery from the low is corrective wave 2 so weakness could follow, but we definitely need to see an impulsive fall on the intraday basis back beneath 101.00 to confirm a resumption of a downtrend.


Crude oil 4-hour Elliott Wave Analysis



We are expecting weaker gold (COMEX:GCQ14) price after a five wave drop from $1,345 that we labeled as wave a), part of a minimum three-wave decline in wave (b) that can reach levels around $1,280 in the next few days. Notice that in recent sessions market made nice rally up to $1,313-$1,325 area; it was more than 50% which can be enough, so downtrend may resume soon. $1,345 is now invalidation level; as long as it will hold we are looking down.

Gold 4-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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