We continue to monitor a promising Elliott Wave setup on XAU/USD. The current structure suggests the completion of a complex corrective wave pattern, followed by the formation of a new impulsive bullish wave.
🧩 Elliott Wave Count:
The previous cycle concluded with a W-X-Y correction followed by a sharp decline into Wave (2), bottoming around 3249.
A leading diagonal appears to have formed in Wave (1), with Wave (2) retracing into the key 0.618–0.786 Fibonacci support zone.
If this count holds, we are now entering the early stages of Wave (3) of (3), which typically carries the most momentum and extension.
🔍 Key Technicals:
Fibonacci Projections:
Wave (3) targets lie around the 1.272 (3445) to 1.618 (3486) extensions from the origin of Wave (1).
RSI: The RSI Divergence Indicator has already flashed two bearish divergences that played out. Now momentum is building back up, with no current bearish divergence—supporting a bullish continuation.
Channel Breakout: The prior ascending channel broke down but price has reclaimed levels near the mid-range, showing strength after the corrective low.
📌 Bullish Scenario:
If price sustains above the 0.618 zone (around 3275–3300), the path toward 3445 and beyond remains valid. Expect minor pullbacks as Wave (4) unfolds after the extension of Wave (3).
⚠️ Risk Level:
A drop below 3249 would invalidate this count and suggest a deeper correction or an alternative bearish scenario. Use prudent risk management.
📍Conclusion:
This is another idea building on our previous Elliott Wave observations. The current wave structure hints at a potentially explosive third wave in the making, provided support zones continue to hold. We will keep updating this idea as it unfolds.
#elliottwave #gold #xauusd #tradingstrategy #waveanalysis #fibonacci #trendfollowing #marketstructure
🧩 Elliott Wave Count:
The previous cycle concluded with a W-X-Y correction followed by a sharp decline into Wave (2), bottoming around 3249.
A leading diagonal appears to have formed in Wave (1), with Wave (2) retracing into the key 0.618–0.786 Fibonacci support zone.
If this count holds, we are now entering the early stages of Wave (3) of (3), which typically carries the most momentum and extension.
🔍 Key Technicals:
Fibonacci Projections:
Wave (3) targets lie around the 1.272 (3445) to 1.618 (3486) extensions from the origin of Wave (1).
RSI: The RSI Divergence Indicator has already flashed two bearish divergences that played out. Now momentum is building back up, with no current bearish divergence—supporting a bullish continuation.
Channel Breakout: The prior ascending channel broke down but price has reclaimed levels near the mid-range, showing strength after the corrective low.
📌 Bullish Scenario:
If price sustains above the 0.618 zone (around 3275–3300), the path toward 3445 and beyond remains valid. Expect minor pullbacks as Wave (4) unfolds after the extension of Wave (3).
⚠️ Risk Level:
A drop below 3249 would invalidate this count and suggest a deeper correction or an alternative bearish scenario. Use prudent risk management.
📍Conclusion:
This is another idea building on our previous Elliott Wave observations. The current wave structure hints at a potentially explosive third wave in the making, provided support zones continue to hold. We will keep updating this idea as it unfolds.
#elliottwave #gold #xauusd #tradingstrategy #waveanalysis #fibonacci #trendfollowing #marketstructure
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.