Gold Elliott Wave Insight: Navigating the Counter-trend for Investors

Gold Elliott Wave Technical Analysis

Function: Counter-trend Strategy

Mode: Corrective Phases

Structure: Zigzag Formation Potential

Current Position: Wave (v) within the Blue 'c' Segment

Direction: Continuation of Wave (v) in Blue 'c'

Analysis Detail: As Gold rallies in wave (v) of the blue 'c' segment of Y within the 3rd wave, it is approaching the culmination of this phase, poised to shift towards a bearish trend to initiate wave (4) after completing its current impulse sequence in wave (v).

Gold's journey has been noteworthy, hitting an all-time peak in December, followed by a brief correction period lasting over two months. This was succeeded by a vigorous rally to set new all-time highs in early March, with the precious metal's upward trend remaining unbroken. For investors looking to leverage Gold's momentum, embracing a strategy focused on purchasing during dips could be advantageous. This commodity blog post aims to shed light on the anticipations for Gold traders and investors, identifying potential trading opportunities through the Elliott Wave Theory lens.

An impulse wave pattern has been observable in the daily time frame since December 2015, marked in blue circles. The fourth wave of this sequence, blue wave 4, found its low in September 2022 at 1614.8, signalling the start of the fifth wave. Within the Elliott Wave framework, the fifth wave may evolve as either an impulse or an ending diagonal, with the impulse showcasing a 5,3,5,3,5 structure and the ending diagonal a 3,3,3,3,3 layout. The segments (1), (2), and (3) post-1614 indicate a three-wave subdivision each, hinting at an ending diagonal formation for wave 5. However, as wave (3) nears the invalidation point of the ending diagonal at 2330.77, it suggests an impending conclusion and a forthcoming pullback for wave (4).

Gold Elliott Wave Analysis Trading Lounge 4-Hour Chart

Gold 4-Hour Chart Analysis:

Focusing on the H4 timeframe, wave (3) is detailed as a double three pattern, consisting of waves W, X, and Y. Currently, we are in the final stages of Y's wave (v) of blue c, expected to complete wave (3). Although there are no immediate signs of a pullback, it's reasonable to anticipate one soon, especially if it falls below the invalidation level of 2330.77. Following the primary trend, the strategy of buying dips remains preferable for engaging in Gold trading, presenting a conservative method to benefit from its ascent. Traders are encouraged to stay alert and adjust their strategies to seize forthcoming market opportunities effectively.

Technical Analyst: Sanmi Adeagbo

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