Gold Elliott wave Zigzag ending, Ready for a pull back?

Elliott Wave Forecast Team ElliottWave-Forecast.com

In this Technical blog, we are going to take a quick look at the Gold 1 hour chart from Feb 21,2017. In which the bounce from 2/15/2017 low (1216) appeared to be in 5 waves sequence & the bounce was impulsive rather then corrective sequence. Thus suggesting the cycle from 1216 low could be following the Elliott wave Zig-zag pattern. Where the cycle from 1216 low ended at 1242 that we have labelled as wave (a) of the possible zig-zag pattern. According to Elliott wave theory Zigzag is a 3 wave structure having internal subdivision of (5-3-5) swing sequence. The internal oscillations are labeled as A, B, C where A = 5 waves, B = 3 waves and C = 5 waves. This means that A and C can be impulsive or diagonal waves. The A and C waves must meet all the conditions of wave structure 5, such as: having an RSI divergence between wave subdivisions, ideal Fibonacci extensions, ideal retracements etc. As the cycle from 1216 low to 1242 highs was in 5 waves swing sequence, our Strategy was to buy the 3 swing pullback in wave (b) in between 50-61.8% Fibonacci retracement area between 1229- 1222 (highlighted with a blue box) for the next leg higher into the direction of previous wave (a) or for 3 swings pullback at least to allow our members at elliottwave-forecast to create a risk free position at least.

Gold 1 hour chart 2/21/2017

Here’s the Gold latest 1 hour chart showing the bounce from 1229-1222 blue box area as expected in 5 waves within (c) higher. Currently metal has reached another blue box area which is a profit taking area and we think the zig-zag structure from 1216 low can end in this area between 1251 – 1267 resulting in a 3 wave pull back at minimum.

Gold 1 hour chart 2/24/2017

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Elliott Wave Forecast Team

ElliottWave-Forecast.com

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