GOLD Elliott Wave
Since our last analysis gold was trading in a sideways movement, impulsive (3) wave (coloured green) started to develop. During the Friday’s European session we could observe descending movement from 1,715.88 towards the 1,705.43 level. Therefore, during the New York session this commodity did not manage to hold this level and the price retraced back to 1,715.90 level. At the moment gold is trading around 1,720.50 level and we are expecting to see the price around 1,811.00 level this week. 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 1,811.90 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1,704.86 level as stop loss.

Support and Resistance
(S3)1,696.2 (S2) 1,700.9 (S1) 1,707.8 (PP) 1,712.5 (R1) 1,719.4 (R2) 1,724.1 (R3) 1,731.0

Trading Forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,716.00 with stop loss 1,704.86 and take profit at 1,811.90 are recommended.