Short-Term Gold Elliott Wave Analysis
Published 31st October 2018
The short-term Elliott wave pattern is probably incomplete. Gold rallied from the mid-August 2018 bottom into the 1,240 mark. Bullish price action stopped at that level and reversed. Technical analysts are probably not surprised that this happened right around 1,240. That level has been support/resistance throughout the past few months. Swings showed a reaction upon reaching that level repeatedly. Moreover, the 38.2% Fibonacci retracement of the entire swing that spans from mid-April to mid-August is also right around that level. Fibonacci retracements receive attention by traders. Therefore, selling or buying pressure is likely concentrated around such technical marks.
Price action morphs into an A-B-C pattern from the August lows to the upside unless gold starts to rally soon. Moreover, the paramount trend shows a textbook flat correction. Both technical observations imply that another down leg is likely. Additionally, it appears that the down leg started already. Price action from the October 26th, 2018 interim high appears to unfold impulsively to the downside. Another test of the bottom of the pink sideways trend channel seems to be the short-term target for gold. This target remains likely as long as the 1,240 figure does not get crossed on gaining momentum to the upside. A crossing of 1,240 is bullish and another short-term low becomes unlikely.
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