XAUUSD short
Updated
Elliott Wave Analysis
Wave (3) Completion: The chart indicates that the Wave (3) has completed its upward movement.
Corrective Wave (A): The subsequent drop to the level marked as (A) represents the first leg of the corrective Wave (4), known as Wave (A).
Wave (B): The current price action is showing a retracement, forming what seems to be Wave (B) of the corrective pattern. Wave (B) usually retraces some portion of Wave (A).
Key Levels and Structures
Break of Structure (BoS): There is a marked Break of Structure, which is typically significant in technical analysis as it indicates a potential reversal or strong continuation pattern.
Fair Value Gap (FVG): The Fair Value Gap (FVG) marked on the chart provides an area where price might fill in the imbalance before continuing its trend.
Future Projections
Completion of Wave (B): The shaded area marks the expected completion zone for Wave (B), suggesting that price may rise to this area before reversing.
Wave (C) Projection: The chart projects a potential drop to complete Wave (C) and subsequently Wave (4). This is supported by the Fibonacci extension levels and the area of interest around the 2,160 level, where the 1.618 extension of Wave (A) is aligned.
Critical Zones
Resistance Zone: Around the 2,380 - 2,388 level, which is also the expected completion zone for Wave (B).
Support Zone: Around the 2,186 - 2,124 level, marked by the potential end of Wave (C) and Wave (4).
Volume and Momentum
The chart shows volume data, which can be used to confirm price movements. Increased volume on the rise towards Wave (B) completion zone can confirm the strength of the move. Conversely, a decline in volume during the rise may suggest weakness and an impending reversal.
Trading Strategy
Short-term Long Position: Traders could consider a short-term long position aiming for the resistance zone around 2,380 - 2,388, keeping an eye on the FVG as it might provide resistance.
Short Position: Upon confirmation of Wave (B) completion, traders might look for short opportunities targeting the 2,186 - 2,124 support zone.
Conclusion
The current analysis suggests that gold is in a corrective phase within a larger uptrend. The completion of Wave (B) is likely to provide a short-term trading opportunity, followed by a potential decline completing Wave (C) and Wave (4). Traders should monitor key levels and use appropriate risk management strategies to navigate the expected price movements.
Always consider combining this technical analysis with fundamental factors affecting gold prices, such as economic data, geopolitical events, and central bank policies, for a comprehensive trading strategy.
Wave (3) Completion: The chart indicates that the Wave (3) has completed its upward movement.
Corrective Wave (A): The subsequent drop to the level marked as (A) represents the first leg of the corrective Wave (4), known as Wave (A).
Wave (B): The current price action is showing a retracement, forming what seems to be Wave (B) of the corrective pattern. Wave (B) usually retraces some portion of Wave (A).
Key Levels and Structures
Break of Structure (BoS): There is a marked Break of Structure, which is typically significant in technical analysis as it indicates a potential reversal or strong continuation pattern.
Fair Value Gap (FVG): The Fair Value Gap (FVG) marked on the chart provides an area where price might fill in the imbalance before continuing its trend.
Future Projections
Completion of Wave (B): The shaded area marks the expected completion zone for Wave (B), suggesting that price may rise to this area before reversing.
Wave (C) Projection: The chart projects a potential drop to complete Wave (C) and subsequently Wave (4). This is supported by the Fibonacci extension levels and the area of interest around the 2,160 level, where the 1.618 extension of Wave (A) is aligned.
Critical Zones
Resistance Zone: Around the 2,380 - 2,388 level, which is also the expected completion zone for Wave (B).
Support Zone: Around the 2,186 - 2,124 level, marked by the potential end of Wave (C) and Wave (4).
Volume and Momentum
The chart shows volume data, which can be used to confirm price movements. Increased volume on the rise towards Wave (B) completion zone can confirm the strength of the move. Conversely, a decline in volume during the rise may suggest weakness and an impending reversal.
Trading Strategy
Short-term Long Position: Traders could consider a short-term long position aiming for the resistance zone around 2,380 - 2,388, keeping an eye on the FVG as it might provide resistance.
Short Position: Upon confirmation of Wave (B) completion, traders might look for short opportunities targeting the 2,186 - 2,124 support zone.
Conclusion
The current analysis suggests that gold is in a corrective phase within a larger uptrend. The completion of Wave (B) is likely to provide a short-term trading opportunity, followed by a potential decline completing Wave (C) and Wave (4). Traders should monitor key levels and use appropriate risk management strategies to navigate the expected price movements.
Always consider combining this technical analysis with fundamental factors affecting gold prices, such as economic data, geopolitical events, and central bank policies, for a comprehensive trading strategy.
Note
We got a sniper entry guys
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