Yesterday’s hourly charts for both Elliott wave counts had a target at 1,316 for a bounce to end and then expected downwards movement to show some strength as a third wave began. This is exactly what happened. Upwards movement reached 1,315.81, just 0.19 short of the target, before turning and moving strongly lower.
With price closing below a long term bear market trend line, the analysis is today again changed.
A short term target for Tuesday was 1,247. The low for the session fell $5.39 short of the target, after a whipsaw took out the short term invalidation point on the hourly Elliott wave chart.
A pullback was expected when price made a new low below 1,244.28, but it was expected to be a little deeper though: price fell $6 short of the first target at 1,238.
The overall trend remains up, which still fits the Elliott wave count.
A short term target at 1,264 has not been met; price has fallen $5.41 short. However, price did make a new high at the start of Monday’s session and overall upwards movement continues as expected.
Price has overcome resistance at 1,236.50. The target on the alternate Elliott wave count has been reached.
Gold remains within the consolidation zone after another day of essentially sideways movement, which was expected.
A downwards reaction was expected for Monday, which is exactly what has happened.
Some upwards movement was expected from last analysis. An inside day neither fits expectations nor invalidates the Elliott wave count. A new alternate is provided today.
Overall more downwards movement was expected and did happen, but a small bounce was expected to end about 1,270 first and that did not happen.
An upwards day was expected as likely for Wednesday’s session for Gold. Price moved slightly lower, however, before bouncing upwards at the end of the session.
A pullback has continued lower to test support at prior resistance, which is typical price behaviour.
Volume will be used to indicate what is most likely to happen next.
A small inside day completes and fits expectations for a correction to continue.