The golden metal reached the highest level since 2013, surpassing the $1,400 level. In this post, we’ll review what to expect for Gold in the following weeks.
The big picture
The long-term structure looks like an ascending channel with its recent price action surpassing the top trendline. The RSI striking the 80 level, provide us with the clue that the price is in a relevant resistance, and we should expect a significative retracement.
Also, we observe a five-wave sequence that started in August 2018. The internal channel developed in the last upward wave makes us suspect that its fifth wave is completed. The previous bullish cycle respects Elliott’s criteria about the fifth wave identification.
We expect the XAUUSD to retrace to the previous swing lows between $1,322 and $1,292. This corrective movement should converge with the base-line of the internal ascending channel. The invalidation level for this corrective movement is the last high at $$1,415.
For more information, you can visit the following articles: