Gold Elliott Wave
Since our last analysis gold was trading in an upward move like we expected, impulsive 3 wave (coloured blue) of the bigger
(3) wave (coloured green) was developing. During the Asian and European sessions we could observe slight ascending movement from 1,704.35 towards the 1,714.40 level. Therefore, during the early New York session gold did not manage to hold this level and price started pushing lower reaching 1,708.20 level. Today this commodity is trading around 1,711.50 level and we are expecting to see continuation of the bullish mood for 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 1 at 1,732.52 (161.8% of wave 1) and take profit 2 at 1,749,25 (261.8% of wave 1). To reduce the risk, we can use invalidation at 1,698.74 level as stop loss.


Support and Resistance
(S3) 1,694.1 (S2) 1,699.6 (S1) 1,704.6 (PP) 1,710.1 (R1) 1,715.1 (R2) 1,720.6 (R3) 1,725.6

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,712.00 with stop loss 1,698.74, take profit 1 at 1,732.52, and take profit 2 at 1,749.25 are recommended.