The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction has been completed, consider long positions above 4,174.78 with a target of 4,900.00–5,610.00. A buy signal: the local correction ends and the price settles above 4,174.78. Stop Loss: below 4,105.00, Take Profit: 4,900.00–5,610.00.
- Alternative scenario: Breakout and consolidation below 4,174.78 will allow the asset to continue declining to the levels of 3,954.50–3,720.00. A sell signal: the level of 4,174.78 is broken to the downside. Stop Loss: above 4,245.00, Take Profit: 3,954.50–3,720.00.
Main Scenario
Consider long positions above the level of 4,174.78 with a target of 4,900.00–5,610.00 once the correction ends.
Alternative Scenario
Breakout and consolidation below 4,174.78 will allow the asset to continue declining to the levels of 3,954.50–3,720.00.
Analysis
An ascending third wave of larger degree (3) is presumably developing on the weekly chart. Within it, a descending correction has been completed as the fourth wave of smaller degree 4 of (3). Apparently, the fifth wave 5 of (3) started developing on the daily chart, with wave i of 5 forming as its part. On the H4 chart, wave (iii) of i of 5 has formed, and a local correction is nearing completion as wave (iv) of i, with wave c of (iv) forming as its part. If the presumption is correct, XAU/USD will continue to rise to the levels of 4,900.00–5,610.00 after the correction ends. The level of 4,174.78 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 3,954.50–3,720.00.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of XAUUSD in real time mode
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