Gold: Fishing all the waves; ABC in the final leg of wave 5
Following up from our last update titled "Are Bulls Teasing Bears?", we are witnessing an exhilarating finish to the week as gold makes a remarkable $100 jump since our last analysis. This thrilling surge forms part of the final leg, Wave 5, of the proposed ending diagonal structure. True to Elliott Wave principles, each wave within this structure is subdividing into three smaller waves, ABC.
A Textbook Finish: The market is setting up a perfect ending diagonal, with gold poised to complete the ABC pattern in this final leg. However, caution is advised. Despite the bullish momentum, the RSI on the 4-hour chart is not supporting this upward move, signaling potential exhaustion.
Don't Get Too Emotional: As we near the completion of this ending diagonal, it's essential to stay vigilant. One unfavorable clue could send gold tumbling like a house of cards. Key support levels to watch are 2469 and 2400. If these levels break, gold could develop a negative bias, eyeing the next supports at 2355 and 2305.
Be Careful: Bears are closely watching this move. While the excitement of new highs is tempting, it’s crucial to be prepared for a potential reversal once the ending diagonal completes. Stay cautious and manage your risk wisely.
Author
Abhishek H. Singh
WaveTalks
Abhishek is a seasoned financial analyst with over a decade of experience specializing in Elliott Wave Theory.
