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