Elliott Wave View: Gold Looking to break 2018 High
|In our previous article, we have highlighted the possibility that Gold can quickly retest the high in 2018. The chart below shows the yellow metal has broken above a long term bearish channel from Sept 5, 2011 high. In addition, it has successfully closed above the ascending trend support from December 3, 2015 low.
We mention that the next logical swing target for the yellow metal is to retest 2018 high at $1360 area. This level has provided resistance for the past 5 years and thus is a significant level to watch. A decisive break and close above $1360 suggests a more bullish implication with next swing target to as high as $1700. The chart below shows the 5 year rounding bottom formation in Gold.
An Elliott Wave analysis of Gold against World Currency Unit (WOCU), a weighted basket of 20 fiat currency pairs covering top 20 world economies, also suggests a breakout.
In the chart above, a break above 7.6.2016 high will create 5 swing bullish sequence from 12.30.2013 low and opens up more upside to $1021 – $1160 area.
Gold 1 Hour Elliott Wave Chart
In this article, we will look at the short term 1 hour chart for Gold. The rally from Aug 16, 2018 low is still in progress as an Elliott Wave Impulse structure. We propose the current rally is still within wave (3) from Aug 16, 2018 low as momentum remains strong. Focusing on the shorter cycle, the rally from 1/21/2019 low ($1276.40) is unfolding in 5 waves of lesser degree. Wave ((i)) ended at $1326.30 and wave ((ii)) ended at $1302.16. Wave ((iii)) remains in progress and while short term pullback stays above $1302.11, expect Gold still to extend higher. Caution is warranted once Gold does retest $1360 as this level provides resistance in the past 5 years. We expect the 5 waves up from Aug 16, 2018 low to end between $1360 – $1400.
Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.