|

Triangle trap – Gold’s next move Elliott Wave analysis

Gold's range since April 2024

  • Upside: 2455.

  • Lower side: 2285.

Gold has been in a big range, doing a series of connecting waves, narrowing down like a tightened coil. Once coil unfolds in near future post completing Wave-E of the proposed Triangular Structure, next move could be sharp on either side of the critical zones discussed.

Irregular triangle

  • Wave-B: Surpassed highs of 2448 (starting point for Wave-A).

  • New highs: 2454 (slightly above Wave-A).

This falls into the category of an irregular structure where Wave-B surpasses Wave-A.

Higher lows

Rising lows can provide comfort to Bulls until it holds above 2285.

  • Wave-A bottomed: 2285.

  • Probable wave-C completed: 2304 (June 7, 2024).

  • Recent bounce: 2304 (June 26, 2024).

  • Key resistance level: 2401 USD (as of July 5, 2024).

Assuming Wave-D is completed, we have a key resistance at 2401.

Falling in wave-E - triangle trap

The fall has been sharp from the highs of 2401 (assuming Wave-D completed) on the first trading day of the week (July 8-12, 2024), looking to be a corrective fall taking support at 2355 USD (minor support level).

Where are we currently (9th July 2024)

Currently, Gold is within unfolding Wave-E of the structure & completed the first lower degree wave   at 2356 lows & unfolding wave now & later wave

Zone one (Shown in red)

  • Short-term range: 2355 to 2385.

Zone two (Shown in green)

  • Short-term minor support zone: 2305 to 2325.

Move looks to be range-bound, holding the minor support level of 2355 (marked as wave Ⓐ) and can have a bullish bias towards the minor resistance level of 2385. Breaching the zone of 2350 / 2355, the minor support zone of 2305-2325 on the downside will open up.

Key support and resistance zones

  • Key & critical support zone: 2285-2305.

  • Key resistance zone: 2400-2410.

  • Critical resistance zone: 2448-2455.

Any move either side of the key & critical zones could be sharp moves & has to be reviewed once we get further price inputs.

Conclusion

Waiting for Wave-E to complete in the sideways move in which Gold has been trapped since April 2024.

Wave-E could take 1-2 weeks.

Catch me in the next episode of WaveTalks. Have a great week ahead.

Chart

Author

Abhishek H. Singh

Abhishek is a seasoned financial analyst with over a decade of experience specializing in Elliott Wave Theory.

More from Abhishek H. Singh
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD clings to small gains near 1.1750

Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.

GBP/USD edges higher toward 1.3400 ahead of US data and BoE

GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.

Gold stuck around $4,300 as markets turn cautious

Gold loses its bullish momentum and retreats below $4,350 after testing this level earlier on Monday. XAU/USD, however, stays in positive territory as the US Dollar remains on the back foot on growing expectations for a dovish Fed policy outlook next year.

Ethereum: BitMine acquires 102,259 ETH as price plunges 5%

Ethereum treasury company BitMine Immersion scaled up its digital asset stash last week after acquiring 102,259 ETH since its last update. The purchase has increased the company's holdings to 3.96 million ETH, worth about $11.82 billion. BitMine aims to accumulate 5% of ETH's circulating supply.

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Solana Price Forecast: SOL consolidates as spot ETF inflows near $1 billion signal institutional dip-buying

Solana (SOL) price hovers above $131 at the time of writing on Monday, nearing the upper boundary of a falling wedge pattern, awaiting a decisive breakout.