FX.co ★ Elliott wave analysis of Gold for April 14, 2021

Gold is still trying to break above short-term key-resistance at 1,755 to confirm that wave 4 has bottomed and wave 5 is in motion. We are still convinced that wave 4 has bottomed and once the short-term key-resistance is broken we should expect a strong surge higher to the wave 3 peak at 2,075 and ultimately a break above here for a continuation towards at least 2,704 and possibly much higher if wave 5 extends beyond the normal, which isn't unlikely as fifth waves in the commodity complex often sees strong extensions in the 5 wave.

For now, we should stay focused on short-term key-resistance 1,755 and a expected break above here. Only an unexpected break below 1,677 will keep wave 4 alive, but the potential downside should be limited.

Trading recommendation:

Buy a break above resistance at 1,755 for a strong rally in wave 5