A few weeks ago, we mentioned that Elliott wave analysis suggested that gold was trying to bounce from the 1628 area. So far, that scenario has played out nicely.

Now we're watching the upper edge of a potential channel to see whether it acts as resistance. If it reaches the upper boundary this week, then it would be in the vicinity of 1713. The channel boundary will be one of the first decision points that will provide a clue about whether price can climb higher.

Note that our primary count (shown in blue) considers the up-move to be corrective, and that still can be true even if the channel boundary is exceeded.

We describe swing trading opportunities like this frequently on our blog and on our Facebook page.

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