GOLD May Face Resistance: Elliott Wave Analysis

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Gold has extended it’s gains well above 1300 mark in the last few weeks from 1251, triangle low. Notice that we have adjusted the wave count but actually massage is the same; we see a corrective advance from 1181 moving into 1345/50 resistance. We are observing a zigzag with a triangle placed in wave (b). We also know that wave (b) pattern CANNOT be labeled as wave two, because triangles never occur in wave two position. So we believe that rally is a contra-trend and that gains will be limited. However, before we can confirm a bearish reversal we need an impulsive structure to the downside. In other words, we need five wave decline back to 1300 area.
GOLD 4h Elliott Wave Analysis
Written by www.ew-forecast.com
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Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com