Elliott Wave Patterns Suggest For Lower GOLD

By: Gregor Horvat | Wed, Nov 6, 2013
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GOLD reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know that's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside in the next few weeks if we consider possibly completed flat correction in wave 2. A fall and daily close beneath 1251 is needed for a wave 3 down back to 1180.

GOLD Daily Elliott Wave Analysis

Gold Daily Chart

On the 4h chart below we can see recent reversal down from 1360 where a five wave move from 1251 probably accomplished that flat correction in wave 2 as mentioned and presented on the chart above. Notice that current weakness also extended through the small base channel line (blue circle) which usually occurs in impulsive price action. With that said, further weakness is expected as we think that price is in now moving lower in red wave i) that may find a support around 1280-1290 and then will make a retracement up in red wave ii) which could be a very good position for short opportunity.

GOLD 4h Elliott Wave Analysis

Gold 4-Hour Chart

 

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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple and how to label and track unfolding patterns in real time.  His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.

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