XAUUSD-ELLIOT WAVE EXPLINATION - 15 mins
Elliott Wave analysis suggests that Gold is currently in the ABC corrective phase, where:
Wave AB has been formed (possibly an impulsive or corrective leg).
Wave BC is expected to be a 5-wave down move, which indicates a likely zigzag correction (5-3-5 structure).
Target for BC = $2840 level, implying a significant downside move.
Key Considerations for This Analysis:
Wave AB Completion:
If AB is a sharp move up, BC is likely to be a deeper retracement.
If AB is corrective, BC might be more complex.
BC Wave Structure (5-Wave Down Swing):
If BC follows a 5-wave impulsive structure, it suggests a strong downward move, potentially confirming the zigzag correction.
First signs of a strong sell-off should appear in wave 1 and 3 of BC.
$2840 Target Justification:
If BC retraces 61.8% to 100% of AB, then Fibonacci projections could align with $2840.
Additional confluences from trendline support or previous wave structures should validate this.
Confirmation Points for BC:
Breaking below key support levels to confirm wave 1 of BC.
Failing to break previous AB highs would invalidate any further bullish move.
Possible Elliott Wave Count for Gold
Primary Count:
ABC Zigzag Correction
A: Up Move
B: Partial retracement
C: 5-wave impulsive decline (targeting 2840)
Alternate Count:
If Gold breaks above the current high of AB, then the count needs to be re-evaluated for a potential larger-degree bullish wave structure.
Conclusion:
If Gold follows the 5-wave down structure in BC, then the downside move is valid, and the next major target would be $2840. However, confirmation is needed from price action, trendline breakdowns, and volume patterns before fully committing to the bearish view.
Wave AB has been formed (possibly an impulsive or corrective leg).
Wave BC is expected to be a 5-wave down move, which indicates a likely zigzag correction (5-3-5 structure).
Target for BC = $2840 level, implying a significant downside move.
Key Considerations for This Analysis:
Wave AB Completion:
If AB is a sharp move up, BC is likely to be a deeper retracement.
If AB is corrective, BC might be more complex.
BC Wave Structure (5-Wave Down Swing):
If BC follows a 5-wave impulsive structure, it suggests a strong downward move, potentially confirming the zigzag correction.
First signs of a strong sell-off should appear in wave 1 and 3 of BC.
$2840 Target Justification:
If BC retraces 61.8% to 100% of AB, then Fibonacci projections could align with $2840.
Additional confluences from trendline support or previous wave structures should validate this.
Confirmation Points for BC:
Breaking below key support levels to confirm wave 1 of BC.
Failing to break previous AB highs would invalidate any further bullish move.
Possible Elliott Wave Count for Gold
Primary Count:
ABC Zigzag Correction
A: Up Move
B: Partial retracement
C: 5-wave impulsive decline (targeting 2840)
Alternate Count:
If Gold breaks above the current high of AB, then the count needs to be re-evaluated for a potential larger-degree bullish wave structure.
Conclusion:
If Gold follows the 5-wave down structure in BC, then the downside move is valid, and the next major target would be $2840. However, confirmation is needed from price action, trendline breakdowns, and volume patterns before fully committing to the bearish view.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.