GOLD Elliott Wave
Since our last analysis gold was trading in an upward move, corrective 4 wave (coloured blue) of the bigger wave (C) (coloured green) is developing. Yesterday during the Asian and European sessions we could observe ascending movement from 1734.06 towards the level of 1.743.45. Therefore, during the New York session gold continued trading in a bullish mood and price reached a new daily high at 1747.39 level. Today this commodity finishes development of the 4 wave at 1752.72 level. Now we are expecting to see price under 1728.50 level soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 4, we can define the potential targets with measuring wave 4 with Take Profit at 1728.57 (100% of wave 4). To reduce the risk, we can use invalidation at 1757.05 level as Stop Loss. Also it is necessary to monitor U.S. Building Permits, Housing Starts, and Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 1727.1 (S2) 1731.6 (S1) 1740.6 (PP) 1745.1 (R1) 1754.1 (R2) 1758.6 (R3) 1767.6
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1744.60 with Stop Loss 1757.05 and Take Profit at 1728.57 are recommended.