today’s focus is on Gold (XAU/USD) and its failure to break the support zone.
A larger bullish ABC corrction now seems likely to take price back to $1320-1335 before sending it back lower.
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The daily chart is – in my view – still showing the potential for a larger bearish correction via a bearish ABC zigzag (purple).
The ABC would then complete a larger expanded WXY correction (pink) as part of a wave 2 (light purple).
Once the wave 2 has been completed, I am expecting a large and strong wave 3 (light purple) to push higher. Of course, this wave 3 will most likely see mulitple extensions within it.
The 4 hour chart is showing the difficult for price to break below the support levels (green) mainly due to the corrective price action and divergence between the bottoms.
Gold also seems to have completed a falling wedge reversal chart pattern within the wave X (blue).
The contracting triangle chart pattern is indicating indecision for the moment (red/blue lines), but based on the above mentioned factors, I am expecting a bullish break above resistance (red) within the wave C (green).
Of course, a bearish break below the support trend line (blue) and support (green) would invalidate my bullish outlook.
The 1 hour chart show the same triangle which is market by support (blue) and resistance trend lines (red).
I am keeping an eye on a break, pullback and continuation setup for more upside.
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Many Green Pips,