Elliott Wave View: Further Correction in Gold Expected

After forming a high on February 20, 2019 at $1346.75, Gold has continued to correct lower. The structure of the pullback from February 20 high appears incomplete. This suggests further downside is possible. The decline is unfolding as azigzag Elliott Wave structurewhere the yellow metal is currently within wave C. In a zigzag, typically wave C is equal in length to wave A. A 100% 123.6% Fibonacci extension in wave C can see the metal reaching $1242.31 $1258.04 before finding support.

The internal of wave C subdivides as an impulse where wave ((ii)) ended at $1310.60 as the chart below shows. The yellow metal then extends lower within wave ((iii)) of C which also subdivides as an impulse of lesser degree. Down from $1310.6, wave (i) ended at $1289.4 and wave (ii) ended at $1295.80. Expect wave (iii) to end soon and the yellow metal to bounce in wave (iv) to correct the decline from $1295.92 before the metal extends lower again. We do not like buying Gold in the shorter cycle and still favor more downside as far as pivot at $1295.92 remains intact.

1 Hour Gold Elliott Wave Chart Asia Update

Gold 18 april