GOLD Elliott Wave
Since our last analysis Gold was trading in an upward move like we expected, impulsive wave 1 (coloured blue) of the bigger wave (1) (coloured green) is developing. Yesterday during the Asian and European sessions we could observe ascending movement towards the 1,726.89 level. Therefore, during the New York session this commodity continued trading in a bullish mood and price reached a new daily high at 1,728.60 level. Today Gold finished development of the 1 wave (coloured blue) at 1,729.42 level and price started pushing lower for corrective 2 wave (coloured blue). Gold is trading around 1,717.70 level at the moment and we expect to see price around 1,752.15 level when development of 3 wave starts. 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 1,752.15 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1,713.71 level as Stop Loss.
Support and Resistance
(S3) 1703.2 (S2) 1708.8 (S1) 1719.6 (PP) 1725.2 (R1) 1736.0 (R2) 1741.6 (R3) 1752.4
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1,721.37 with Stop Loss 1,713.71 and Take Profit at 1,752.15 are recommended.