Gold continues its impulsive rally, currently completing what appears to be the final leg of wave ⑤ within an ascending channel. This aligns with the larger Elliott Wave count we've been tracking.
Key points to consider:
Wave Structure: We can observe the completion of five internal waves within wave ⑤, with price now at critical resistance levels near the 2.618 Fibonacci extension ($3,065.338).
Bearish RSI Divergence: While price has continued to climb, RSI has started to show signs of bearish divergence, signalling weakening momentum and a potential reversal.
Support Levels: Should a correction materialize, the next key areas to watch are the 0.236 ($3,025.340) and 0.382 ($2,997.608) Fibonacci retracement levels, which align with the lower trendline of the ascending channels.
Wave ⑤ may be nearing exhaustion, with both the Fibonacci extension and bearish divergence suggesting caution for longs. We could see a retracement to support zones if price reverses.
Key points to consider:
Wave Structure: We can observe the completion of five internal waves within wave ⑤, with price now at critical resistance levels near the 2.618 Fibonacci extension ($3,065.338).
Bearish RSI Divergence: While price has continued to climb, RSI has started to show signs of bearish divergence, signalling weakening momentum and a potential reversal.
Support Levels: Should a correction materialize, the next key areas to watch are the 0.236 ($3,025.340) and 0.382 ($2,997.608) Fibonacci retracement levels, which align with the lower trendline of the ascending channels.
Wave ⑤ may be nearing exhaustion, with both the Fibonacci extension and bearish divergence suggesting caution for longs. We could see a retracement to support zones if price reverses.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.