The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 2728.40 with a target of 2500.00 – 2418.82. A sell signal: the price holds below 2728.40. Stop Loss: above 2735.00, Take Profit: 2500.00 – 2418.82.
- Alternative scenario: Breakout and consolidation above the level of 2728.40 will allow the asset to continue rising to the levels of 2792.47 – 2880.00. A buy signal: the level of 2728.40 is broken to the upside. Stop Loss: below 2720.00, Take Profit: 2792.47 – 2880.00.
Main Scenario
Consider short positions below the level of 2728.40 with a target of 2500.00 – 2418.82 once correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 2728.40 will allow the pair to continue rising to the levels of 2792.47 – 2880.00.
Analysis
An ascending fifth wave of larger degree (5) is presumably developing on the weekly chart, with wave 3 of (5) formed as its part. Apparently, a descending correction is developing as the fourth wave 4 of (5) on the daily chart, with wave a of 4 formed and wave b of 4 unfolding as its parts. Wave (c) of b is forming on the H4 chart, with wave v of (c) developing inside. If the presumption is correct, the XAU/USD pair will continue falling to 2500.00 – 2418.82 after the correction is over. The level of 2728.40 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 2792.47 – 2880.00.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of XAUUSD in real time mode
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