Gold Could Retest 1180 June Low: Elliott Wave Forecast

By: Gregor Horvat | Fri, Dec 13, 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 soon if we consider recent break of 1251 swing low that confirms a completed wave 2 and wave 3 underway to the lows.

From a larger perspective we believe that gold will continue to weaken, towards 1180 and to 1130 in the next few weeks.

Daily Gold Chart

On 4h Chart Gold has been trading higher since early December, but recovery was made only in three legs, labeled as a)-b)-c) on the chart. We know that three wave move is structure of a corrective price action that now appears completed after recent sharp fall from 1267. Decline is looking impulsive so we believe that is part of a larger downtrend.

Gold 4-Hour Chart

On the short-term chart we can see that price is moving nicely lower, clearly in impulsive fashion from this week highs. We see price moving down in wave iii that could look for some temporary support in 1210-1215 region. From there be aware of a short-term retracement back in wave iv which could be good for intraday traders to join the downtrend.

Gold 1-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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