? GOLD Bearish Wave 3 Breaks Weekly Support Line ?

2 min read

Hi traders,

Gold (XAU/USD) bearish momentum was strong enough to break below a key weekly support trend line (dotted blue). The bearish breakout seems to confirm our wave pattern and larger bearish correction within wave 2 (light purple).

Gold

Weekly


XAU/USD bearish breakout could take price lower back to the support zone (green lines) and Fibonacci levels of wave 2 (light purple), which could become a potentially strong bounce and reversal zone for a new uptrend.

Day


XAU/USD managed to break below the bottom (dotted green) which indeed confirms the completion of the wave 4 (orange) pattern as expected. The bearish breakout is now moving towards the next Fibonacci target and support zone (green).

4 hour


XAU/USD bearish breakout is taking place via a downtrend channel. Price seems to be expanding the 5th wave (orange) via a 5 wave pattern (brown).

Good trading,
Chris Svorcik
Elite CurrenSea

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Morris

What is your EW label at the 2011 top?