The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 3,941.85. with a target of 4,900.00–5,610.00. A buy signal: the price holds above 3,941.85. Stop Loss: below 3,875.00, Take Profit: 4,900.00–5,610.00.
- Alternative scenario: Breakout and consolidation below the level of 3,941.85 will allow the asset to continue declining to the levels of 3,720.00–3,290.55. A sell signal: the level of 3,941.85 is broken to the downside. Stop Loss: above 4,010.00, Take Profit: 3,720.00–3,290.55.
Main Scenario
Consider long positions from corrections above the level of 3,941.85 with a target of 4,900.00–5,610.00.
Alternative Scenario
Breakout and consolidation below the level of 3,941.85 will allow the price to continue declining to the levels of 3,720.00–3,290.55.
Analysis
On the weekly chart, ascending wave 5 of larger degree is developing, with wave (3) of 5 forming as its part. On the daily chart, wave 3 of (3) of smaller degree and correction 4 of (3) have formed. On the H4 time frame, wave 5 of (3) has started to develop, with wave (i) of i of 5 unfolding as its part. If this assumption is correct, XAU/USD will likely increase to the levels of 4,900.00–5,610.00. The level of 3,941.85 is critical in this scenario as a breakout below it will enable the asset to continue declining to the levels of 3,720.00–3,290.55.
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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