The preferred Elliott wave count expected price to continue lower, which is exactly what has happened. A channel was used on the hourly chart to indicate where bounces may find resistance, and this has almost perfectly shown where the high for the session ended before price turned to move strongly lower.
Overall, the week has begun with some sideways movement. For the short term, this is what the preferred Elliott wave count expected.
With the preferred Elliott wave count at a very important juncture, it is time to take a clean slate and see if a wave count which expects the opposite could be true. This video follows that process:
Price remains within the channel. At this stage, the analysis has now switched to neutral, awaiting technical indication of a trend change or a continuation of the existing trend.
I’ve videoed the process today of developing part of the Elliott wave count for Gold on the hourly chart. Some members may find this useful in learning Elliott wave and having a deeper understanding of the current Elliott wave structure and expectations for next week.
The target remains the same. At the end of this week, a channel and a specific price point are used to indicate a trend change.
Both Elliott wave counts expected more sideways movement, which is what has happened.
The breakout is expected to be in the same direction from the Elliott wave count and from classic technical analysis of the current pattern.
Overall, sideways movement continues as expected from the Elliott wave counts.
Sideways movement in a small range fits the short-term expectation from the Elliott wave count. Volume today supports the preferred Elliott wave count.
The short-term target for upwards movement for Friday was 1,250. Price moved higher to reach 1,249.66, just 0.34 short of the target.
The main Elliott wave count expected more upwards movement, which is so far what has happened.