GOLD ( $XAUUSD ) Buying The Dips At The Extreme Zone
Hello fellow traders. In this technical blog were going to take a quick look at the Elliott Wave charts of GOLD ( $XAUUSD ), published in members area of the website. As our members know we are favoring the long side in the commodity. We advised members to avoid selling GOLD and keep buying the dips in the sequences of 3,7,or 11 swings whenever opportunity presented itself. In further text were going to explain Elliott wave Forecast and trading strategy.
GOLD 4 Hour Elliott Wave Analysis 9.30.2019
GOLD has made Elliott Wave Double Three pull back -labeled as wave ((4)). The price reached equal legs area 1464.48-1419.83 ( buying zone). As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. We expect buyers to appear at the blue box for further rally or 3 waves bounce alternatively. Invalidation for the long trade is break below 1.618 Fibs. As the main trend is bullish , we expect to get 3 waves bounce at least from the Blue Box. Once bounce reach 50 Fibonacci retracement against the (X) blue high, we should make long positions risk free.
Although buyers zone has already reached, there is no reaction yet so we are aware that price still can extend little bit lower within blue box.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
GOLD 4 Hour Elliott Wave Analysis 10.5.2019
Buyers appeared right at the blue box and the price is already showing reaction from there. The bounce has already reached 50 fibs against the (X) blue high. Members who took long positions from the blue box should be already risk free. At this stage we are calling pull back completed at 1459.08 low, however need to see break above 09/04 peak in order to confirm next leg up is in progress. Until that happens we should be aware that pull back might be still in progress as 7 swings structure per alt view.
Lets downgrade to 1 Hour chart to see what short term structure looks like
GOLD 1 Hour Elliott Wave Analysis 10.5.2019
We got 5 waves up from the 1459.08 low labeled as wave (1) blue. Current view suggests wave (2) is correcting the short term cycle from the mentioned low. Current view suggests we can still get double in wave (2) pull back when now doing X red connector. Proposed pull back has scope to see approximately 1488-1472.7 area, where buyers can appear again for proposed extension higher.
Keep in mind market is dynamic and presented view could have changed in the mean time.You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.
Turning Black arrows shows the path we prefer , but highest probability path is not the same as highest probability trade which is why we focus on green / red right side tags or bullish / bearish sequence combined with blue boxes to trade.
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