Gold Elliott Wave
For the last few days gold was trading in a downward move, corrective wave (2) of the bigger (1) wave (cloured red) was developing. Yesterday during the Asian session we could observe strong descending movement from 1,706.67 toward the 1,684.66 level and we can consider this move as the end of the (2) wave (coloured green). Therefore, during the European and New York sessions gold started pushing higher and the price retraced back to 1,609.50 level. Today this commodity is trading around 1,691.54 and we are expecting to see the price around 1,790.00 level in the next few days. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1,789.71 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1,672.77 level as stop loss.
Support and Resistance
(S3) 1,662.7 (S2) 1,674.4 (S1) 1,685.0 (PP) 1,696.7 (R1) 1,707.3 (R2) 1,719.0 (R3) 1,729.6
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,696.50 with stop loss 1,672.77 and take profit at 1,789.71 are recommended.