“The recovery from $3268 looks like a complete Elliott Wave cycle now, consisting of a five-wave impulse, marked i-ii-iii-iv-v in wave 1, and a simple a-b-c zigzag in wave 2 with a triangle in wave ‘b’. The support near the 61.8% Fibonacci level should help gold bulls stage a reversal for the start of wave 3 towards a new record high. This is the count to rely on as long as $3268 is intact.”
This paragraph was all the explanation the chart below needed when we shared it with our Elliott Wave Pro subscribers on August 20th. That’s more than enough when the patterns are that clear.
Over two weeks later now, gold closed at $3587 for the weekend of September 6-7, after briefly touching the $3600 mark for the first time ever. Furthermore, the invalidation level at $3268 was never threatened since the bulls took the wheel right away near the 61.8% Fibonacci support. The updated chart below visualizes the price’s journey to the north.
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Gold is up by $263 per ounce since that August 20th update, a 7.9% gain in just thirteen trading days. We’re the first to admit that things are not always that easy, of course. In this case, however, the wave structure was very clear and the risk/reward ratio was simply too good to pass.
Now, some of you might have noticed that ‘E of (4)’ labeling at the bottom of $3268. That’s because Elliott Wave patterns don’t form in a vacuum. Every structure is part of a larger one. Ignoring the bigger picture is like trying to solve a puzzle and never looking at the cover image. That’s why, while our Wednesday updates only convey the most vital pieces of information and a single chart, the comprehensive analyses published over the weekends include weekly and daily charts, as well. Our Pro subscribers already know what ‘E of (4)’ stands for and what it means going forward.
Similar Elliott Wave setups occur in the Forex, crypto and stock markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!
