Gold Could Retest 1180 June Low: Elliott Wave Forecast
Gold reversed sharply to the downside at the start of September, through the rising trend line of a corrective channel. As we know that's an important signal for a change in trend, which means that bearish price action is now back in view that could accelerate to the downside soon if we consider recent break of 1251 swing low that confirms a completed wave 2 and wave 3 underway to the lows.
From a larger perspective we believe that gold will continue to weaken, towards 1180 and to 1130 in the next few weeks.
On 4h Chart Gold has been trading higher since early December, but recovery was made only in three legs, labeled as a)-b)-c) on the chart. We know that three wave move is structure of a corrective price action that now appears completed after recent sharp fall from 1267. Decline is looking impulsive so we believe that is part of a larger downtrend.
On the short-term chart we can see that price is moving nicely lower, clearly in impulsive fashion from this week highs. We see price moving down in wave iii that could look for some temporary support in 1210-1215 region. From there be aware of a short-term retracement back in wave iv which could be good for intraday traders to join the downtrend.
Written by www.ew-forecast.com